The Governor administration Monday constituted a committee under the chairmanship of the director of Industries and Commerce Department, Jammu, to examine the state toll tax, an order issued by General Administration Department (GAD) read.
The committee, having three representatives of the Chamber of Commerce and Industry, was directed to submit its report by March 1, the order said.
It added that the committee would examine the level of toll tax being levied on various products entering the state, production of those products within the state, export of locally produced products from the state and modification, if any, as may be needed in the levy of toll tax.
Additional commissioner, State Taxes Department (Administration and Enforcement, Kashmir), additional commissioner, State Taxes Department (Administration and Enforcement, Jammu) and representatives of the Directorate of Industries, Kashmir, would be other members of the committee, the order said.
"The committee shall submit its findings to the principal secretary of the Industries and Commerce Department by March 1," it said.
Lobby groups of traders and industrialists have locked horns over the demand for removal of toll tax at Lakhanpur, which generates a revenue of over Rs 1,000 crore annually.
While the Jammu Chamber of Commerce and Industry (JCCI) has threatened to start an agitation if the governor's administration failed to implement 'one nation one tax' by abolishing the toll plaza, the Federation of Industries Jammu (FOIJ) and the Federation Chamber of Industries Kashmir (FCIK) has said such a move would be a death knell for the local industry and demanded its continuation.