Toll tax set to continue on goods import in J&K

@MIR FARHAT

SRINAGAR: Safeguarding the interests of industrial sector of Jammu and Kashmir, the state government is set to continue the policy of levying toll tax on imports of goods into the state even as the Goods and Services Tax regime stands implemented.
The levying of toll tax is being opposed by the traders of the state, arguing that continuing with collecting toll does not serve the aim of 'One Nation, One Tax' under GST. However, the government argues that it has to keep the interests and survivability of state's industry into consideration.
"Levy of toll tax will continue at Lakhanpur and other toll plazas. It is outside the ambit of the GST and a separate tax levied by the State Government," a senior official in the finance department told the News Now.
The official said that the state earns Rs 900 crore revenue annually from the toll which is collected by Excise department at the toll plazas of Lakhanpur, Ban in Jammu and Lower Munda at Qazigund in Kashmir.
Toll tax is levied on vehicles as well as goods including consumables entering and leaving the State. This can be as low as Rs 1 per loaf of bread, or as high as Rs 4,000 per quintal of cigarettes. Similarly, the toll rates on vehicles also vary. Toll, mandi charges and fee on vehicle entry into States are not subsumed in the GST and will continue to be charged by local bodies or state governments. By toll tax, prices of goods coming into the State increases by which consumers will purchase local items as they will be cheaper.
"Not only revenue, the government has to think about the survival of local industry. By toll tax, our state industry becomes competitive," the official said.
Citing example of the cement industry, the official said that cement from outside will become cheaper if toll tax is done away with.
"Abolishing toll will paralyse the local cement manufacturers and other manufacturing industries, "he said. "So, it has to be continued to safeguard the local industrial sector," he said.
Earlier, when GST was extended to the state the traders in Jammu had opposed toll tax.
Rajesh Gupta, president, Traders Federation, Warehouse, Nehru Market had said the state government must abolish toll tax at Lakhanpur as traders and the common man could not face the brunt of double taxation in the state.
"In case of non-abolition of toll tax, the trading community will be forced to come to the roads," said
On the opposition of traders to toll tax, the official said the government has asked them to come up with concrete, alternate suggestions if they want the toll system to be abolished.
"Let trade and industries sector take a considered view on it if they want local industries to grow. We have asked the traders with well researched suggestions if they want toll tax to go," he said.