Srinagar, Oct 14 (PTI) The revision in GST rates is expected to reduce the tax collection of Jammu and Kashmir by up to Rs 1,000 crore this fiscal, Chief Minister Omar Abdullah said here on Tuesday.

Abdullah, addressing the national executive meeting of FICCI here, also said that the fallout of the Pahalgam terror attack, which was a setback to the image of Jammu and Kashmir, along with heavy rains during the summer of 2025, has severely affected the economy of the Union Territory.

"The revision of GST rates alone will reduce our earnings by Rs 900 to Rs 1000 crore, and for a state like Jammu and Kashmir, which is already in deficit, it is a lot of money," he said.

The chief minister said the torrential rains across Jammu and Kashmir from July to September have severely affected the agriculture and horticulture sectors of the union territory.

"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 of Jammu and Kashmir but also to the perception of the region as well.

"Pahalgam was a setback to how we perceive Jammu and Kashmir as a home," he said.

The chief minister, however, expressed optimism that things were now moving in a positive direction.

"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 added.

Abdullah said it would take time and a lot of effort to take back Jammu and Kashmir to the position before the Pahalgam terror attack. PTI MIJ DRR

GST rate revision reduces Jammu and Kashmir's revenue, worsening fiscal pressure while disaster and security shocks compound economic distress. Revision of Goods and Services Tax rates is projected to reduce Jammu and Kashmir's fiscal receipts by about Rs 900-1000 crore, worsening an existing budgetary deficit. Severe summer rains damaged agriculture and horticulture, and a Pahalgam terror attack depressed tourism and regional perception; these non-tax shocks compound the GST-driven revenue shortfall and intensify the Union Territory's near-term fiscal and economic distress.