Now Reading: Himachal to take up IGST on Shipki La trade with Centre
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Himachal to take up IGST on Shipki La trade with Centre
Himachal Pradesh Revenue Minister Jagat Singh Negi said the state will raise the issue of Integrated Goods and Services Tax (IGST) exemption on goods traded via the Shipki La pass with the…
The Story in Brief
Himachal Pradesh Revenue Minister Jagat Singh Negi said the state will raise the issue of Integrated Goods and Services Tax (IGST) exemption on goods traded via the Shipki La pass with the Centre. His statement follows the Kinnaur Indo-China Trade Association's decision to suspend trade after customs authorities began applying IGST on imports through the route. Traders demand exemption from the tax.
The Shipki La border trade resumed on August 1 after a six-year gap. Negi noted that IGST imposition has significantly reduced trader profits, as no such tax existed earlier. He also highlighted the absence of a quarantine facility for livestock imports, which is now mandatory. The minister said the state will request the Centre to amend the list of 20 permitted trade items to reflect current demand.
The Indian Opinion
The call for IGST exemption on border trade is understandable but ignores that such taxes apply uniformly across India's ports of entry. The narrative of this being an unfair burden overlooks how similar taxes have modernised other border economies. The real test is whether the state can present a compelling case that the tax's revenue gain is outweighed by the trade's collapse. The number to watch is the trade volume before suspension if Himachal wants to prove economic harm.
Source: hindustantimes.com
This story was synthesised by AI from the source linked above.
