Industrialists in Mysuru complain that property tax hurts

Stakeholders from the industrial and manufacturing sectors in Mysuru have urged the Karnataka government to reduce property tax at industrial sites to make businesses sustainable.

Members of the Mysore Industries Association (MIA) and similar organizations also said it would be a positive step towards making it easier to do business and improving the industrial and investment climate in the region.

It has been pointed out that the city council of Hootagalli town, which was constituted last year and comprises the major industrial areas of Mysuru, has enacted a tax rate which is considered to be the highest in Karnataka.

Former MLA Vasu who is the chairman of MIA said that Hootagalli Gram Panchayat has been upgraded and Koorgalli, Hootagalli village, Hebbal industrial area, Belavadi and Hinkal have been incorporated into the new CMC . It is also the core industrial area of ​​Mysuru but the current tax slab promulgated by Hootagalli CMC was not only the highest in Karnataka but also contrary to the state government’s policy of bringing a separate and lower tax slab for industries below the commercial slab.

While the stipulated tax is ₹2 per square foot in the case of large industries, it was ₹1.50 per square foot for medium-sized units and ₹1 per square foot for small-sized units. In contrast, the tax rate was ₹0.80 per square foot for commercial properties and ₹0.50 per square foot for residential properties, and the tax on industrial sites is the highest in Karnataka, a said Mr. Vasu.

In addition, ₹4,000 per acre must be paid to the Karnataka Industrial Zone Development Board (KIADB) as a maintenance fee in addition to the building plan approval fee by the KIADB and the local municipality.

A manufacturing unit in the area was charged more than ₹40 lakh in property tax, including ₹96,192 as a beggar, 1.92 lakh in library, a health tax of ₹4.8 lakh and a transport tax of ₹64,128, by the Hootagalli CMC.

While urban local governments collect taxes quickly, they do not provide the necessary services commensurate with the tax collected. Thus, industrial developments remain devoid of basic amenities, according to stakeholders.

Suresh Kumar Jain, Secretary General of MSME Council, said more than ₹33,000,000 has been collected in property tax from industries in the last six months but local authorities have not even spent a single rupee for infrastructure development.

Karnataka has announced a policy to have a separate bracket for property tax on urban local body industries at a lower rate than that charged for commercial properties. The chief minister has proposed a separate property tax bracket for industries in the 2021-2022 budget to encourage more industries, Jain said.

Following several representations made by various industry bodies, the state government has proposed an industrial township authority with a one-stop-shop system for taxation, but this has yet to be implemented, Ms. Vasu.

Due to the Covid-19 pandemic, almost 30% of industries have closed. The tax rate could impact the remaining units causing a negative impact on jobs and employment, Mr Jain said.


Source link

Comments are closed.