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Kashmir Industry Body Urges 10% Environmental Cess on Imports to Safeguard Local Sector
Srinagar, September 2025 – The Federation Chamber of Industries Kashmir (FCIK) has urged the Jammu and Kashmir administration to impose a 10% “environmental cess” on all imported goods entering the Union Territory. According to the organization, such a measure would not only safeguard local industries but also help compensate for revenue losses caused by recent reductions in the Goods and Services Tax (GST).
The demand was raised during a consultative committee meeting chaired by Shahid Kamal, where participants argued that the proposed cess would give the government fiscal space, restrict unnecessary imports, promote local production, generate jobs, and sustain the livelihoods of artisans.
While the GST Council’s decision to cut rates and simplify compliance has been hailed as a positive national-level reform, the FCIK cautioned that these changes hold little meaning for Jammu and Kashmir unless accompanied by bold local policy measures.
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The body warned that although GST cuts appear to provide relief to consumers, they have placed micro and small industries in Kashmir under further strain, with many already fighting for survival.
FCIK emphasized that without urgent government action — including priority for local industries in state procurement, rehabilitation programs for sick and stressed units, and renewed access to easy bank credit — thousands of MSME units and hundreds of thousands of artisans could face collapse.
The federation welcomed the uniform 5% GST rate on handicraft products and simpler compliance procedures, but stressed that such limited reforms are “insufficient to rescue Kashmir’s struggling industrial sector.”
