Renewed demand for Mysuru Industrial Township Authority — a centralised governance system
Mysore/Mysuru: Over 200 industrialists from Hootagalli, Belavadi, Hebbal, Koorgalli, Siddalingapura and Hinkal met Deputy Commissioner (DC) Dr. K.V. Rajendra to address a long-standing dispute regarding the excessive tax structure imposed by Gram Panchayats, Town Panchayats and City Municipal Councils on industries within their jurisdictions. These areas are home to numerous MSMEs and large industries in the Mysuru region.
The interactive meeting with the DC was held at the Office of the Hebbal Industrial Estate Manufacturers Association (HIEMA) this morning.
The industrialists expressed concern about the high property tax rates in the Hootagalli Industrial Area, now under the Hootagalli City Municipal Council (CMC), which are among the highest in the State.
Excessive tax rate: They highlighted the following property tax slabs: 20 paisa per square foot for vacant plots, 50 paisa per square foot for residential buildings, Rs. 1.50 per square foot for commercial buildings, Re. 1 per square foot for small-scale industries (SSIs), Rs. 1.50 per square foot for medium industries and Rs. 2 per square foot for large industries.
Despite the existence of a Government Order stating that tax rates for industries should be lower than those for commercial properties, this guideline has not been followed.
The stakeholders urged DC Dr. Rajendra to direct the local bodies to levy taxes lower than those imposed on commercial properties, as specified in the Government Order, which is a minimum of 0.40 percent of the building value.
Paying multiple agencies
They also raised concerns about the lack of services and amenities despite the Hootagalli CMC collecting more than Rs. 35 crore in property taxes from local industries.
They pointed out that industrialists are already required to pay fees to the Karnataka Industrial Area Development Board (KIADB) for building plan sanction and are burdened with additional building licence fees to the CMCs, resulting in double taxation without adequate benefits.
In contrast, industries within the Mysuru City Corporation (MCC) limits enjoy a lower tax structure compared to the rates proposed by Gram Panchayats and CMCs on the city outskirts. Industrial areas such as Bannimantap and Yadavagiri adhere to the specified tax rates while benefiting from essential services like water, power supply, roads and sanitation systems.
Industrial Township Authority
The industrialists also urged the establishment of the Mysuru Industrial Township Authority, which has been announced multiple times but remains unimplemented. They emphasised that this Authority would remove industrial estates from the control of local bodies and create a centralised agency for tax payment, leading to focused development and streamlined administrative processes in industrial areas.
They proposed allocating 30 percent of the property tax collected from industrial areas to local municipalities while utilising 70 percent for the maintenance of industrial areas.
During the meeting, the industrialists highlighted issues such as cleanliness, street lighting, and other basic amenities that require attention. DC Dr. Rajendra assured them that he would address the concerns with the KIADB, Gram Panchayats and CMCs to ensure compliance with the government-prescribed tax structure.
Dr. Rajendra also inspected certain industrial areas and instructed KIADB officers to maintain cleanliness and remove unauthorised tea shops.
District Industries Centre (DIC) Joint Director Dinesh, HIEMA President Prakash Gowda, Secretary Ramakrishna, Treasurer Channakeshava and Mohan Krishna were present on the dais.
Mysore Industries Association (MIA) Secretary Suresh Kumar Jain, Mysore Chamber of Commerce and Industry (MCCI) President K.B. Lingaraju, Industrialists Subramanya, A.S. Satish, Raghavendra, Ramakrishnegowda and others were present.
This post was published on July 11, 2023 7:45 pm