Jammu and Kashmir Chief Minister Mehbooba Mufti today welcomed the extension in tax exemption announced by the Centre for industries in the state.
The extension in tax exemption would go a long way in promoting industrial growth and economic development in J-K, she said.
The chief minister thanked Prime Minister Narendra Modi and Union Finance Minister Arun Jaitley for having taken keen interest in ensuring continuation of the exemption to the industries in J-K for another 10 years.
The exemption for industries in J-K and other hilly states till March 2027 was announced by the Jaitley today after the decision was approved by the Union Cabinet.
State Finance minister Haseeb Drabu also welcomed the extension in tax exemption and he said it would be paid as a refund under the Goods and Services Tax (GST) regime.
Drabu said that the state government would within the next fortnight work out the exact modalities and incentive structure that would benefit local industries, investors and consumers.
"The new incentive structure will protect the local industry and benefit local customers," he said.
The state government is committed to incentivise the industries, but the tax and fiscal incentives should be given in such a manner that it promotes greater employment and higher value addition, the state minister said.
Jaitley has announced in New Delhi today that the industries in J-K, the north-eastern states and other Himalayan states will continue to get tax exemption till March 2027, albeit as refund, under the current Goods and Services Tax (GST) regime which was rolled out on July 1.
"Within the framework of the GST Act each industry will be entitled to its own refund mechanism during this particular period (March 31, 2027)," the union minister has said.
Industries in the Himalayan states of Jammu and Kashmir, Himachal Pradesh and Uttarakhand, and those in the north-east under the previous excise regime used to get a 10-year exemption, he said.
Under the new GST regime, there is no provision for exemption but there is one section under the Act which permits refunds, Jaitley said.
"Therefore, refund would be permitted through DBT. The sunset clause of these exemption has been extended to 2027. 4,284 industrial establishment will entitled to this benefit. Budgetary provision for this is Rs 27,413 crore," he said.
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