After land reforms and hinting at scrapping periodic renewal of licences, Karnataka is likely to introduce a property tax slab for industries that will relieve them from overzealous local bodies which levy high commercial rates.
At present, property tax slabs are residential and nonresidential (commonly called ‘commercial’), and the industries pay the commercial slab rates. The third category will be between residential and non-residential ones, and details are being worked out.
“This is a long-pending issue and the concerns of the industries and investors are genuine. We’ve decided to introduce a slab cheaper than commercial rates,” said industries minister Jagadish Shettar.
‘Property tax problem has plagued us for long’
Over the years, the industry has made multiple representations about gram panchayats and municipal bodies collecting the maximum amount on the commercial slab.
“The problem of property tax has been plaguing us for long. For instance, when the Peenya estate came under BBMP (it was earlier under city municipal council), the tax went up from Rs 2,000 or so to over Rs 35,000 even as all other facilities remained the same,” J Crasta, national executive committee member, Ficci, said.
Welcoming the move, CR Janardhan, president, Federation of Karnataka Chamber of Commerce and Industries, said the government had, responding to industry appeals, issued a circular late last year disallowing gram panchayats from demanding taxes as they please.
Gaurav Gupta, principal secretary (industries), said: “We are looking at a new slab for industries across the state, covering all municipalities, towns and cities. We already have separate slabs for electricity and water, and this will be the next step.”
He hoped the new slab will soon be a reality.
