Get all your news in one place.
100’s of premium titles.
One app.
Start reading
The Hindu
The Hindu
National
Special Correspondent

Mysuru industries want tax anomalies resolved

The MSME Council in Mysuru has urged the government to resolve the long-standing dispute over tax structure levied by the gram panchayats and other local bodies as it was at odds with the State government’s policy of promoting industries in rural areas.

The issue has gained fresh traction with the Gram Panchayats levying tax at a rate that is almost four-fold the tax imposed in the city corporation limits in Mysuru.

The MSME Council has now written to the Chief Minister, the Minister for Industries and the Deputy Commissioner of Mysuru to intervene and resolve the issue as the tax structure was becoming unstainable and also did not commensurate with the services and civic amenities provided to industries in return for tax collected, by the Gram Panchayats.

Suresh Kumar Jain of the MSME Council told The Hindu that for industries located within the Mysuru City Corporation (MCC) limits, the tax structure was lower than the slabs proposed by the Gram Panchayats on the city outskirts.

“While industries in Bannimantap and Yadavgiri industrial areas pay tax at the specified rate, they also benefit from services and amenities by way of water, power supply, road, UGD etc. But the GPs like Immavu, Siddalingapura etc where new industries are being located, are paying almost four-fold the tax imposed by the city corporations. But the GPs – though they collect tax – lack the capacity or resources to provide adequate services and amenities,” said Mr.Jain.

As per existing norms, the GPs should collect tax at the lowest slab in case it was unable to provide amenities proportionate to the tax collected. But this norm was not being complied with, Mr. Jain added.

Accumulation of interest

As a result many of the industries have not paid the taxes resulting in accumulation of interest which was being compounded. Hence the MSME Council has sought rectification of the anomalies to pave the way for higher tax collection without burdening the industries.

A memorandum submitted to the authorities has also highlighted that the taxation rate at Hootagalli industrial area which now falls under the newly upgraded Hootagalli CMC, was among the highest in the State. The tax slab was 20 paisa for vacant plot per sq.ft, 50 paisa per sq.ft for residential buildings, Rs. 1.50 per sq.ft for commercial buildings Rs. 1 per sq.ft for SSIs, Rs. 1.50 per sq.ft for medium industries and Rs. 2 per sq.ft for large industries and was described by the stakeholders as exorbitant and unsustainable.

Though there is a GO that the tax slab for industries should be lower than commercial slabs, it was not being complied with, the stakeholders added. Mr. Jain said though the industries have collectively paid nearly Rs. 30 crore to Hootagalli CMC by way of taxes last year, amenities or services provided was not proportionate to the rate of tax collected.

The MSME Council has also urged the government to notify the industrial township authority for Mysuru, which has been announced multiple times in the past but has remained only on paper.

If the industrial township authority is constituted, it will not only take away the industrial estates out of purview of the local bodies but will create a single window agency for payment of tax so as to enable focused development of the industrial areas, say the stakeholders.

Sign up to read this article
Read news from 100’s of titles, curated specifically for you.
Already a member? Sign in here
Related Stories
Top stories on inkl right now
Our Picks
Fourteen days free
Download the app
One app. One membership.
100+ trusted global sources.