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Withdrawal of Lakhanpur Toll Tax a death nail for J&K Industrial sector: BBIA

KT NEWS SERVICE. Dated: 6/16/2019 11:06:01 PM

JAMMU, June 16: Bari Brahamana Industries Association on Sunday expressed concern in respect of repeated attempts of some vested interest traders for the removal of Toll Tax at Lakhanpur Toll Post who are bent upon to destroy the Industrial Sector of J&K by raising their voice for the removal of Toll Tax at Lakhanpur.
Speaking to media Lalit Mahajan President BBIA, Tarun Singla, Sr. Vice president BBIA representing J&K Steel Rolling Mills Association, Vijay Aggarwal, President, AOI Smaba, Ajit Bawa President, Kathua Industrial Unit Association, Sanjay Puri President of J&K Roller Flour Millers Association, Sandeep Mittal General Secretary representing Cement Manufacture Association, Representative of J&K Corrugated Boxes Manufacturing Association, Office Bearers & other Members of the various Associations of Jammu Province told that with their ill full design to allow the Import/Export of unaccounted goods in/from the State which may be resulting huge Financial Loss to the State Exchequers as well as to the Industrial Sector of J&K working in State in spite of all the odds since last 30 years facing Militancy as they are facing stiff competition from the Manufacturers/ Traders from outside the State.
They told that the persons behind the motive to remove the Toll Tax at Lakhanpur with their personal interests as they are holding the C&FA of various products being imported from outside the State and it was observed previously that as and when the Govt. exempted sometimes from the Toll Tax in the past the benefit of the same never passed on to the consumers & in some cases the rates has not been reduced but have been enhanced by the companies.
The majority of the Food Products & Fresh Vegetables etc. which are being used by the common man are already exempted from the preview of Toll Tax, hence there is no justification for hue & cry raised by some persons who are trading in some goods on which the Toll Tax is being deposited in crores of Rupees annually. Moreover all the products being supplied by the Domestic/Multi National Companies on MRP basis in which the Toll Tax Component has already included in the prices and it has been noted in past that the benefit of Toll Tax Exemption has never been passed on to the Consumers.
It is pertinent to mention here that in post GST Regime, the Import of Industrial goods from outside the State has been increased in many fold, which were being manufactured by Local Sons of the Soil by setting up of their units with the Investment of their hard earn money and running with the capacity of 25 to 30 % in post GST Regime and in case of Toll Tax removed, the Unit Holders will have no option but to close down their units which may be resulting in to the conversion of their working capital/ Term Loan in NPA, Mass Scale Retrenchment of around 2 Lac Industrial Labour directly employed in Industrial Sector, Loss of Crores of rupees Power revenue to State Govt. due to Clouser of Units, Social Unrest amongst the retrenched industrial workers & other Negative Impact on the Economy of the State and we fear that the Unit Holders will have no option but to migrate from our State to other neighbouring States.
It is worthwhile to mention here that it has been proved with the imposition of Penalty and seizure of Goods at Lakhanpur Toll Post in the post GST Regime at Lakhanpur with a strict check on the Import/Export of Unaccounted Goods & if the Govt. withdraws the Toll Tax at Lakhanpur Check Post, the whole State shall be flooded with the unaccounted goods & other related material which will prove as death nail for the Industrial Sector of the State & the worst suffers will be the Industrial Sector of the State.
It was also highlighted during the press conference that any move of the Govt to withdraw the Toll Tax may be resulting into mass scale agitation by the Industrial Units along with the retrenchment of the Industrial Workers as majority of the Industrial Units have no option but to close down their units.
It was strongly advocated that Govt. should not remove Toll Tax at Lakhanpur and the Toll Tax Exemptions should be continued in GST Regime to the Existing as well as New Industrial Units to compensate the additional transportation cost on the Raw Materials and Finished Goods.