MSMEs in rural areas of Mysuru demand resolution of tax structure

Categories: News

Industries located in rural areas of Mysuru have raised the issue of tax anomalies as Gram Panchayats (GPs) and other local bodies are levying tax which are in odds with the Karnataka government’s policy of promoting industries in rural areas.

Gram Panchayats (GPs) are imposing tax at a rate that is almost four-fold the tax imposed in the city corporation limits in Mysuru, reported The Hindu.

Urging the government to resolve the dispute, the MSME Council has now written to the Chief Minister, the Minister for Industries and the Deputy Commissioner of Mysuru seeking their intervention.

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 GPs on the city outskirts.

A specified rate is paid as tax by industries in Bannimantap and Yadavgiri industrial areas and they also benefit from services and amenities by way of water, power supply, road, UGD etc.

“Whereas new industries in GPs like Immavu, Siddalingapura etc 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 Jain.

GPs are not complying to the norm of collecting tax at the lowest slab in case it was unable to provide amenities proportionate to the tax collected, pointed out the industries.

Accumulation of interest are being compounded as industries have not paid taxes and have sought rectification of the anomalies to pave the way for higher tax collection without burdening the industries.

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