Shipki La border traders suspend fast over IGST; Sukhu to take up issue with Sitharaman
Himachal Chief Minister Sukhvinder Singh Sukhu will raise the issue of the Integrated Goods and Services Tax (IGST) levied on traditional border barter trade between India and China through Shipki La in Kinnaur with the Union Finance Minister Nirmala Sitharaman on September 7. Though the border trade resumed after six years on August 1, the traders decided to boycott it following the imposition of the ISGT, terming it economically unviable. The association had brought the matter to the notice of the state government so that it could be taken up with the Central Government. After assurance from the state government, the traders decided to suspend the proposed fast from tomorrow till September 7. “We have been assured that the matter will be taken up with Union Finance Minister Nirmala Sitharaman when Chief Minister Sukhvinder Singh Sukhu meets her on September 7. He will seek a favourable and appropriate resolution of the matter to provide relief to the traders,” said Hishey Negi, president of the Kinnaur Indo-China Trade Association.
He said that the association highlighted the adverse impact of the IGST on the traditional barter trade as the additional tax burden would significantly affect its viability and economic sustainability. The long-pending issues confronting traders engaged in the traditional trade through Shipki La were virtually discussed in Shimla on Friday. Ram Subhag Singh, Principal Adviser to Chief Minister; Kinnaur Deputy Commissioner, who is also the Trade Commissioner; ADM, Pooh; General Manager, DIC, Kinnaur; Assistant Commissioner, Customs; Deputy Commandant, ITBP; and Hishey Negi, president, Kinnaur Indo-China Trade Association, attended the meeting.
Negi said that since the border trade was undertaken on the barter system between India and China, the imposition of the IGST would hit the overall trade volume, affecting the traders economically. “The association remains hopeful that the ongoing dialogue and the state government’s intervention will lead to a fair, practical and lasting resolution of the issues affecting the Shipki La border trade,” he added.
He reiterated that the IGST issue was a matter of serious concern for the traders and the further course of action would be decided after the outcome of the proposed discussions with the Union Finance Minister on September 7.
The association also requested the state government that the issues relating to the quarantine facility, road connectivity between border trade centres and the updating of the Trade Import-Export List be pursued simultaneously so that the traditional Shipki La border trade could be strengthened, modernised and made viable for the future.
