Jammu Industrialists Oppose Implementation of One Nation, One Tax

The decision of the government to implement ‘One Nation One Tax’ in Jammu and Kashmir by abolishing the road tariff at Lakhanpur Toll Plaza on Jammu-Pathankot Highway has irked the local industrialists in Jammu who argue it to be the “death of local industry.” Notably, the abolition of Lakhanpur Toll Post will cost Rs 1,500 crore revenue loss to the newly formed UT of Jammu and Kashmir. The tax was abolished with the aim to bring the erstwhile state at par with other States and UTs in India. The Lakhanpur Toll Post, which is perceived as the backbone of local industry, used to charge road tariff on the items imported to Jammu and Kashmir from the other parts of India providing protection to the small-scale industries.

The announcement for abolishing the toll post was made in a press conference held on December 31 by Rohit Kansal, Principal Secretary, Planning, Development and Monitoring Department. Expressing his opposition to the abolition of the toll tax, Bari Brahmana Industries Association (BBIA)’s president, Lalit Mahajan told NewsClick, “This decision will result in the death of local industries. The goods that were being produced in Jammu will now be imported from outside. Local industries in Jammu and Kashmir have been braving the conflict-ridden atmosphere for last 30-40 years. There is Pakistan on one side and China on the other side, yet we have been managing to survive. But this is an attempt to destroy local industries.”

Speaking about the implications of One Nation, One Tax on the local industries in Jammu, Mahajan said, “This will allow the import of unaccounted goods from the other parts of the country leading to financial loss. Not to forget the worst sufferers are MSME (micro, small and medium enterprises), the small scale industries, which account for 90% of businesses in Jammu and have given employment to around 4-5 lakh people. These 4-5 lakh people will be unemployed in no time. The small-scale industries include packaging, steel mills and cement.”

Also read: Jammu and Kashmir: Internal Trade Affected

“What is important to highlight is that we have our markets only in Jammu and Kashmir unlike Punjab and Himachal, and once that is gone we will be jobless. The government should eithr compensate the local industries or rollback the decision,” he added.

Since the decision has been announced, one after another emergency meetings have been convened and press releases have been circulated to make people aware of the consequences. “In the next 10 minutes, I will be attending another emergency meeting where we will decide the next steps we have to take,” Mahajan told NewsClick.

Vinay Mahajan, vice president of the Cement Manufacturing Association while talking about the importance of toll plaza for local industries, said, “Toll plaza was a shelter for local industries. The idea behind Lakhanpur Toll Plaza was to boost local industries in Jammu and Kashmir. Cement industry is the most affected one. We have around 28 cement factories in Jammu division for which the majority of raw material including limestone comes from Kashmir and rest from outside. For the industries in Jammu, the resources are limited and the market is small. The local industries in other parts of country have open market, we are restricted in that as well.”

“This order is a death knell for the local industries. Because of the toll plaza we could compete with the outside industries. Besides, due to insurgency and related curfews or other such reasons, we only work for 7 months or so. Now, we are helpless. Huge unemployment will also be generated. There was a reason why there was a toll plaza. The government needs to understand and come up with a solution as soon as possible,” Mahajan added.

Also read: Budget 2019: Mockery of Poor People, Say Industrialists, Traders and Farmers From Jammu