Srinagar: The revision in Goods and Services Tax (GST) rates is likely to reduce Jammu and Kashmir’s tax revenue by up to ₹1,000 crore this fiscal year, Chief Minister Omar Abdullah said on Tuesday.
Addressing the national executive meeting of FICCI in Srinagar, Abdullah noted that the twin challenges of the recent Pahalgam terror attack—which dealt a blow to the region’s image—and the heavy rains during the summer of 2025 have severely impacted the Union Territory’s economy.
“The revision of GST rates alone will cut our revenues by ₹900 to ₹1,000 crore. For a region like Jammu and Kashmir, which is already facing a deficit, this is a significant loss,” he said.
Abdullah added that the torrential rains between July and September have badly hit the agriculture and horticulture sectors, dealing a major blow to the local economy.
“The impact has been substantial,” he remarked.
Commenting on the Pahalgam terror attack, the chief minister said it had hurt not just the tourism industry but also the broader perception of Jammu and Kashmir.
“The incident in Pahalgam was a setback—not just for tourism but also for how we see Jammu and Kashmir as our home,” Abdullah said.
Despite the challenges, he expressed cautious optimism about the future.
“When things are good in Jammu and Kashmir, they are very, very good—and when they are bad, they are terrible. I wouldn’t say we are at the lowest point right now, though we came close earlier this year. But I believe the direction is now positive,” he said.
Abdullah concluded by noting that restoring Jammu and Kashmir to its pre-attack position would take both time and sustained effort.
