GST reforms may reduce J&K revenue by 10-12 pc, severely impacting fiscal position: CM Omar Abdullah
GST
Dated:- 3-9-2025
PTI
New Delhi, Sep 3 (PTI) Jammu and Kashmir Chief Minister Omar Abdullah on Wednesday said that the proposed GST reforms could reduce the UT's revenue by 10-12 per cent, adding to the severe fiscal crisis as its public revenues have “collapsed” in the aftermath of the Pahalgam terror attack.
In his written speech circulated at the 56th GST Council meeting, he called for the establishment of suitable mechanisms to ensure the fiscal stability of states and union territories.
“The major sectors of the economy, like tourism, transport, construction, automobiles have come to standstill post April 2025. The proposed reform can further reduce our GST revenues by 10-12 per cent. Hence as the Finance Minister of Jammu and Kashmir, I am of the opinion that establishing suitable mechanisms and safeguards for the fiscal stability of States and UTs is critical,”
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the “geopolitical challenges” facing the country and the severe fiscal pressures on his region following the terror attack.
He talked about substantial loss of jobs and businesses, and a decline in public revenues. The tourism, transport, construction, and automobile sectors have all been badly affected, and the departure of non-local workers has slowed infrastructure development.
After the Pahalgam incident, Abdullah said the UT is facing severe fiscal challenges as its revenues have declined considerably.
In J&K, he said enthusiastic participation by people was witnessed in the Parliamentary and Assembly elections last year but just as the economy started recovering , the Pahalgam incident occurred.
“Today, all the sectors of economic activity, including tourism, handicraft, horticulture and agriculture are badly affected. The flight of non-local workers has slowed down development of infrastructure projects,” the chief minister said.
Fully endorsing the two-tier (5 and 18
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noting that the country's growth path is “suddenly challenged by geopolitical challenges” and also pointed to “whimsical trade policies of the colonial era” that he said could restrict India's access to 20 per cent of the global market, affecting thousands of workers in sectors like agriculture, handicraft, and gems and jewellery.
Asserting that the GST, introduced in July 2017, remains the most ambitious federal tax reforms in India's fiscal history, he said through these eight years, several steps and initiatives have been taken in tax structure, administrative mechanism, and technology frontier to improve efficiency and revenue mobilisation from GST as also to facilitate honest taxpayers and dealers.
“The past year has been nothing but challenging for Jammu and Kashmir and for the entire nation. At the national level, we see our growth path suddenly challenged by geo-political challenges.
“Our economy is steadily accelerating at 6–7 per cent growth rate. We have increased our
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