Jammu is the official earning son in J&K; contributes 75% to taxes

Image Courtesy: State times

Jammu, June 16: Yes, it is official! Jammu is the earning son of J&K as many have claimed over the years and this fact stands verified as Jammu division contributes around 75% to the taxes being collected by the Commercial Taxes.

On the other hand realization of taxes from the Kashmir division is only around 25%.

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Odd it is then that the allocation of funds to Jammu division is far lesser than Kashmir division, which again is on record a fact.

Now most of the taxation offices are concentrated in the commercial hubs of the state, Jammu and Srinagar and their functioning concerns the trade activity across Jammu and Kashmir. The Taxation Authority’s Commercial Taxes department realizes taxes on account of VAT, MST, Entry Tax, Stamps and Registration.

The official figures were provided in the lower house by the Minister Incharge Finance in reply to the query of BJP MLA from Jammu East, Rajesh Gupta.

It was not surprising to learn that Jammu division is far ahead of Kashmir division in contributing to the taxes being collected by the Commercial Taxes Department.

Officially taxes paid by Jammu division is almost 75% in the last three years. The same in Kashmir division remains around 25%.

Taxes realised during 2014-15:  Rs 4760.77 crore

Rs 3592.15 crore from Jammu division

Rs 1168.62 crore from Kashmir division.

Sales Tax During 2014-15:  Rs 3744.93 crore Sales Tax/VAT

Jammu division – Rs 2690.57 crore

Kashmir Division – Rs 1054.36 crore

Account Head-P-Tax During 2014-15:

Jammu Division – Rs 8.58 crore

Kashmir division – Rs 4.16 crore

Taxes realised during 2015-16:  Rs 5515.96 crore

Jammu division – 4126.89 crore

Kashmir Division -1389.07 crore

Taxes realised during 2016-17: Rs 976.90 crore up to ending April

Jammu division – 749.49 crore

Kashmir Division – Rs 227.41 crore

The Problem

Now it is understood that more trading houses, companies and industrial units in Jammu compared to Kashmir alongwith Taxes realised at Lakhanpur is the reason behind higher tax collection from Jammu division.

A senior member of the business community who requested anonymity questioned saying, there can be no justification in the prevalent discrepancy in the allocation of funds. It clearly sends a signal of discrimination which is a wrong signal to those actually responsible for generating resources for the State.

The Union Government allocates funds depending on their contribution to the Central Taxes.

This yardstick is not applied to Jammu and Kashmir.

This allocation needs to be fair as many parts, especially Ladakh lags far behind

Oddly, even the honourable High Court has never restrained the Government from making public the names of defaulters but the list is never made public.