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Strikers tell Kashmiris not to pay taxes

Mukhtar Ahmad in Srinagar

The Kashmir Traders and Manufacturers Federation has rounded off its two-day strike with a call to the people not to pay taxes. This is a serious blow to the state's efforts to get the taxation and civil administration going.

Earlier in 1990, various militant groups had asked the people not to pay taxes. For seven long years, the Kashmiris did not pay even electric and water charges. When he assumed office, Chief Minister Dr Farooq Abdullah gave a 50 per cent rebate on the accumulated electric bills.

The Kashmir traders, supported by the State Employees and Bar Association and various transport outfits, were campaigning against the "harsh" budgetary proposals. The strike call evoked remarkable response. All state government offices, educational institutions and banks remained closed. Traffic was off the roads in the entire valley. This, despite a strict warning by the state government to its employees.

"The heavy hike in various taxes will break the back of the ordinary Kashmiri," said traders and manufacturers spokesman Geelani, "We will not allow the government to implement the new taxes."

He also asked the people of the valley not to pay the monthly power and water charges.

"This is an anti-people budget. You see even the arrears which are due to us have been impounded in the provident fund account," said Mohammad Iqbal, a state employee.

According to Finance Minister Mohammad Shafi, who presented the 1999-2000 Budget on March 4, the state is in a debt trap. Its indebtedness at the end of March 1998 was for Rs 77.98 billion, including the Rs 32.31 billion owed to the Centre. The per capita debt burden on the central loan has increased from Rs 3,104 in 1991 to Rs 4,186 in 1998. And hence, he explained, the state has no option but go in for heavy taxation.

The Fifth Pay Commission recommendations, implemented in the state last year, has brought a burden of 6.06 billion.

Meanwhile, a report from Jammu said life was paralysed in view of the strike called by the Jammu Chamber of Commerce. Various political parties including the Congress have been holding protest rallies in Kashmir and Jammu against the budget.

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