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| Not GST but Pak aided militancy has hit JK tourism | | | A parliamentary committee is right when in its report, has commented on the negative impact of the GST to tourism related activities. Since the state of Jammu and Kashmir is a consumer state it has to import products for its industrial units which manufacture products for tourists. That way some of the unit holders have to get raw material for their products by air which multiply the cost of the products on the basis of he GST. The Goods and Services Tax (GST) has had a "negative" effect on tourism in Jammu and Kashmir, a parliamentary panel has noted, adding the Government of India (GoI) should reconsider the indirect tax regime on tourism-related activities in the northern state. The Committee on Development of Tourism in Jammu and Kashmir, in its report, said according to the stakeholders, sourcing of products and materials is an issue in the state.
It said unlike other states, residents of Jammu and Kashmir and its business owners spend huge amounts of money on procuring essentials, most of which have to be flown in, which increases their capital expenditure.
"The sensitive nature of Jammu and Kashmir must be taken into consideration during the development of tourism in the region. The implementation of GST on tourism in the region will have manifold effects, mostly negative on its economy," the committee said. It said small business owners of small-scale hotels, bed and breakfasts and home stays cannot list their properties on various travel intermediary websites as there is a levy of 18 per cent of GST, which cuts across the little profit they make, making their venture "unsustainable". It is hoped that with the Union Finance Minister amending GST so as to delink various items from the GST may have a positive impact on tourism in Kashmir.
Whether the GST or not tourism industry had to suffer losses because of Pakistan sponsored militancy related violence. GST was introduced couple of years ago but the tourism to Kashmir has had to suffer losses since 1989-90. Those connected, their number if placed at over one lakh, with tourism suffer heavy losses, including hoteliers, houseboat owners, poneywallas, porters, transporters and those dealing in goods that tourists prefer. How can tourists, whether home or foreigners, wish to stay in Kashmir which is a regular battle field between militants and security forces? Your cannot see tourists spending lakhs of rupees to get caught between the conflict. On one hand one is not expected to holiday in Kashmir when he security scenario is disturbed with hand grenades and bombs besides gun fire between the militants an d security forces. If there are people who are opposed to Pakistan sponsored militancy it those are connected with tourism. |
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