Abolition of toll tax at Lakhanpur, a desideratum to avoid double taxation

Vijay Gupta. Dated: 9/19/2017 11:18:46 AM


Vijay Gupta
Jammu, Sep 18
Despite the imposition of GST, retention of toll tax on goods at Lakhanpur entry point, the gateway of Jammu and Kashmir, imposing the burden of double taxation on goods which hampering the interests of the business community, as there is a hike in the prices of commodities of common use. Thus, it becomes requisite to abolish the toll in the spirit of 'One nation, One tax' regime under the Goods and Services Tax.
Notably, all products that enter the state are costlier by the rate of toll levied than other parts of the country. Meanwhile, the Excise Department also charges the toll on each and every vehicle for entry as well as exit from the state.
Consequently, it adds to the plight of poor by making expensive the essential commodities including lifesaving drugs.
Whereas with the roll-out of the GST, other states in India have abolished their border tax check posts.
An average 2,000 carriers used to enter the state daily but the number is decline. As the traders have to face double taxation. Similarly, exports may witness the same situation.
The reason for the government has taken the shield of special status to protect toll in the state could be the hefty amount of revenue which is generated under law of land by excise department from the last few years. For instance, in the years of 2012-2013 it was 356.11 crores, in 2013-2014 it was 404.76 crores, in 2014-2015 it was 415.61 crores, in 2015-2016 it was 495.58 Crores and in 2016-2017 the revenue generated is 568.96 Crores
However, industrialists have an edge for the industry over the traders as industrial goods are exempted from toll in the state.
The abolishment of the toll tax is requisite for the welfare trading community and economic development of the State. J&K has come under the GST regime along with the rest of the country but is still imposing toll tax on trucks carrying goods into the state defied the notion of ‘One Nation, One Tax’.
The imposition of the toll tax on goods sends out a message that Jammu and Kashmir is not part of 'One nation, One tax' regime under the Goods and Services Tax.
The state should levy any tax after implementing the GST and it has to be abolished. So, appropriate measures need to be taken to abolish toll at Lakhanpur.
Particularly, after the implementation of GST in the country and bringing it under one tax one nation ambit, toll plazas in the country have been closed but unfortunately, Lakhanpur Toll Plaza is still working which leads to increase in prices of essential commodities in State.
Pertinently, at the state level, the taxes that GST subsumes include state cesses and surcharges, luxury tax, state VAT, purchase tax, central sales tax, taxes on advertisements, entertainment tax, all forms of entry tax, and taxes on lotteries and betting. Central taxes replaced by the GST are service tax, special additional customs duties (SAD), additional Excise duties on goods of special importance, central excise, additional customs duties, excise on medicinal and toilet preparations), additional excise duties on textiles and textile products, and cesses and surcharges.

 

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