On Wednesday (September 3, 2025), which emphasized the destructive impact of the terrorist attack of Pahalgam on the economy of Jammu and Kashmir, was looking for support for the resolution of this situation.
The territory of the Union (UT) faced a serious fiscal crisis because its public revenue “collapsed” as a result of a terrorist attack of 22 April, in which 26 people were killed, he said.
Mr. Abdullah, who also holds a financial portfolio, said 56. GST Council meetings in Delhi that the main economic sectors, including tourism, crafts, agriculture and horticulture, stopped after the attack.
The proposed GST reforms could further reduce UT revenues by 10 to 12%, the main minister said.
It was an opinion that the GST Council could continue with proposals for rationalization of rates, but should be designed suitable mechanisms for both state and UT compensation.
The support of the Jamm and Kashmir resort in the fiscal crisis was critical, Mr. Abdullah stressed.
“The main industry of the economy, such as tourism, transport, construction and cars, has reached the rest position in April 2025. The proposed reform can further reduce our GST income by 10-12%.
“Therefore, as Minister of Finance Jammu and Kashmir, I am of the opinion that the introduction of suitable mechanisms and guarantees for fiscal stability of states and UT is critical,” he said.
He emphasized the devastating impact of the event on the UT economy and called for the center to settled the situation, especially with regard to the proposed rationalization of the GST.
“We can continue to design the rationalization of the rate and at the same time invent a mechanism for compensation of states/UT for their fiscal stability and creating guarantees to convert the benefits of rationalization in reduced prices for the masses of our country,” he said.
Mr. Abdullah said that GST reforms must consider unique challenges facing individual states and UT.
In more detail, as the local economy gained renewed strength than it was “shocked” by the “incident of Pahalgam” in April 2025. These events and its consequences brought the main economic sectors – including tourism, crafts, horticulture and agriculture.
The Chief Minister also called on the Minister of Finance of the Union of Nirmal Sithaman-Headed Gst Council to deal with the “geopolitical challenges” after a terrorist attack, and serious fiscal pressures on its region.
He spoke of a substantial loss of jobs and businesses and a decline in public income. “Today, all sectors of economic activities, including tourism, crafts, horticulture and agriculture, have been seriously influenced. The years of infrastructure projects slowed down,” said the main minister.
The main minister fully supported the two -stage (5 and 18%) design of the GST structure and said: “My main problem is how we ensure that this rationalization alleviates the burden of an ordinary person and makes this specific goods and services more accessible to the masses of our country.
“These often lead to classification disputes, inverted structures of duties and complexity of compliance. The recommendations of the group of ministers and the proposal of trade unions deal with these distortion to a large extent and strive to minimize these aberrations.
“We need to have systemic warranties to assure us that the proposed rate changes have the main advantages for consumers and are not in conflict in the chain. There should be no room for profit from this rationalization of the rate,” Abdullah said.
The main minister also affected national economic issues and noted that the country’s growth route was “suddenly questioned by geopolitical challenges” and also pointed to the “capricious colonial era”, which could limit India’s access to 20% of the global market.
He claimed that the GST, presented in July 2017, remains the most ambitious federal tax reform in India’s fiscal history, that during these eight years it was adopted in the tax structure, administrative mechanism and technological border to improve the efficiency and mobilization of GST income, as well as to facilitate honorary tax staff.
“Last year there was nothing but demanding for Jammu and Kashmir and the whole nation.
“Our economy is constantly accelerating the growth speed of 6-7%. We have increased our export competitiveness and increased our share of global markets in goods and services.
“Our Forex reserves have increased to $ 660 billion in the last two decades. But today we are looking for our market approach has been seriously limited by the capricious trade policies of the colonial era,” he said.
The main minister said that these policies would get rid of about 20% of the global market and seriously affect thousands of workers and entrepreneurs in agriculture, crafts, maritime products, gems and jewelry.
Published – 3 September 2025 20:41 is
