SRINAGAR: The Federation of Chambers of Industries Kashmir (FCIK) on Monday urged the Government of Jammu Kashmir to announce long-pending power and VAT amnesties for industrial enterprises during the ongoing budget session.
The Federation said these measures were critical for the survival and revival of units facing severe financial stress caused by COVID-19 disruptions, administrative re-organisation, and changes in public procurement policies since 2019.
FCIK highlighted that numerous industrial units across JK have defaulted on electricity payments due to mounting demand charges and compounded interest, rendering continued operations unviable. The Federation demanded that any industrial power amnesty should include waiver of demand charges, interest and surcharges, payment only for actual electricity consumption, and the option to clear arrears in 12 monthly instalments.
The Federation also sought urgent action on VAT-related notices for the pre-GST period. It noted that industrial units were exempted from VAT under a remission mechanism and were promised a clean slate during the transition to GST in 2017. Contrary to this assurance, many enterprises now face demands and litigation over past VAT obligations. FCIK requested a non-discretionary VAT amnesty to close pending cases and withdraw all such demands.
The Federation emphasised that granting these amnesties would not only reduce litigation and administrative burden but also restore confidence among existing enterprises, bolstering industrial activity and economic revival in the Union Territory.
FCIK expressed faith in earlier assurances from the Chief Minister and Chief Secretary that such measures would be considered, and urged their inclusion in the current budget session to provide timely relief to distressed industrial units.
