The Kashmir Chamber of Commerce and Industry (KCCI) on Tuesday urged the government to exempt Kashmiri handicrafts from GST as the valley lacks logistic support in absence of a dry port.

A delegation of KCCI led by its President Sheikh Ashiq Ahmed held an interactive meeting with Vivek Bhardwaj, additional chief secretary, Industries & Commerce, in Srinagar.

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The KCCI demanded that the government should give all benefits to Kashmir Handicrafts and declare it a Special Economic Zone.

The delegation demanded that all handmade items should be exempted from taxes like GST. To preserve the livelihood of weavers, artisans, traders, and exporters who are involved in handicrafts and also the famous art of the cottage industry. GST must be waived on pashmina shawls, carpets, papier-machie, crewel, chain stitch, and wood carving, they also demanded.

The KCCI leaders said that Piyush Goyal, Minister for Textiles, Industries & Commerce, on his visit to Srinagar last year on 18 October announced the setting up of Carpet Village as a demonstration centre of the local craft to visiting tourists and also promote the local carpet industry globally. They demanded immediate implementation of the announcement.

This carpet village should be provided with all common facility centers wherein design development, dying, washing, bank facilities, and packing.

The KCCI demanded the restoration of direct flights from Srinagar  International Airport to  Sharjah/ Dubai which is an important hub for the business sector from  J&K.

A direct flight from Srinagar to Jeddah for the convenience of the growing number of people undertaking Haj was also demanded.

Silk Carpets containing more than 60% silk should be given a 7% refund under RODTEP Scheme to encourage and boost silk handmade carpets in Kashmir.

There should be a separate ITC (HS) code for Pashmina Shawls and verified by the competent testing laboratory.  No capping should be placed on Pashmina Shawls or other value-added handicraft items under RODTEP Scheme, KCCI demanded.

The trade and commerce body demanded a 100% waiver on Artisan Credit Card and said government must give support to the manufacturers and exporters to sustain in this present turmoil as most of the accounts are either stressed or turned NPAs.

New Industrial policy benefits are extended for existing Industries like Interest subsidies on Working Capital and Term Loans.

The overall losses incurred over the years have resulted in an unprecedented level of stress on the working capital and finances of the local business establishments. Though there have been several interventions by the Government for extending support the continuous cycle of disruptions has failed their objectives, the KCCI pointed out.