Ease of Doing Business for MSMEs: Mysuru’s small business association, the MSME Council, has sought intervention from the government over the difference in the tax levied on them by Gram Panchayats and the other local bodies which is different from the limit set by the State government, the report in The Hindu stated.
The long-standing dispute came to light as the Gram Panchayats started imposing tax that was four times higher than the tax imposed in the city corporation limits in Mysuru.
The MSME Council has written to the Chief Minister, Minister for Industries and Deputy Commissioner of Mysuru to resolve the issue of tax anomalies since the tax structure was not conducive for the industry and also not in line with the services and amenities provided by Gram Panchayats, according to the report.
Suresh Kumar Jain, general secretary of the council, told The Hindu that as per the norms if the Gram Panchayats were failing to provide amenities proportionate to the tax collected, they should impose tax accordingly.
“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,” he said.
The anomalies led to non-payment of taxes by several industries and the accumulated interest is being compounded, said the report. The MSME Council has hence asked the government to remove the burden from the industries and fix the irregularities. They have also submitted a memorandum highlighting the taxation rates at Hootagalli industrial area that is now under the newly upgraded Hootagalli city municipal council.
According to the report, the tax slab in Hootagalli 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.
The Hindu quoted stakeholders, “Though there is a GO that the tax slab for industries should be lower than commercial slabs, it was not being complied with.”
MSME Council’s Jain said the industries paid taxes to the tune of Rs 30 crore to Hootagalli CMC last year and the services provided in lieu of the high taxes are not at par.
The council has also requested the government to notify the industrial township authority for Mysuru to end local bodies’ intervention and create a single-window agency for tax payments.