GST Rate Revision to Cut J&K’s Tax Collection by Up to Rs 1,000 Crore: Omar Abdullah
Srinagar, Oct 14: The revision in GST rates is expected to reduce Jammu and Kashmir’s tax collection by up to Rs 1,000 crore this fiscal year, Chief Minister Omar Abdullah said on Tuesday.
Addressing the national executive meeting of FICCI in Srinagar, Abdullah said the economic fallout of the Pahalgam terror attack, coupled with heavy rains during the summer of 2025, has dealt a severe blow to the Union Territory’s economy.
“The revision of GST rates alone will reduce our earnings by Rs 900 to Rs 1,000 crore, and for a state like Jammu and Kashmir, which is already in deficit, it is a lot of money,” he said.
He noted that the torrential rains from July to September have significantly affected the agriculture and horticulture sectors. “This has been a major dent to the economy,” he added.
Abdullah said the Pahalgam terror attack was not only a setback to the tourism industry but also to the overall perception of Jammu and Kashmir.
“Pahalgam was a setback to how we perceive Jammu and Kashmir as a home,” he remarked.
However, the chief minister expressed optimism, saying the situation is now improving. “The situation in Jammu and Kashmir, when it is good, it is very, very good, and when it is bad, it is terrible. I wouldn’t say we are at the lowest right now, but we came very close to it earlier this year. But the direction now, I would like to believe, is a positive one,” he said.
He added that it would take time and effort to restore Jammu and Kashmir to its position before the Pahalgam attack.
