FKCCI seeks deadline extension for property tax payment
Federation of Karnataka Chambers of Commerce and Industry (FKCCI) has urged the State government to provide some concessions to industries in view heavy blow they suffered from Covid-induced lockdown.
Bengaluru: Federation of Karnataka Chambers of Commerce and Industry (FKCCI) has urged the State government to provide some concessions to industries in view heavy blow they suffered from Covid-induced lockdown. FKCCI president Perikal M Sundar, CA Dr I S Prasad, president-elect and B V Gopal Reddy, senior vice president-elect and D M Shankarappa, chairman, District Coordination Committee, attended a meeting with Jagadish Shettar, Minister for Large and Medium Scale Industries, Byrathi Basavaraju, Minister for Urban Development, and M T B Nagaraj, Minister for Municipal Administration, and sought reduction in property tax burden on lockdown-hit industrial units in Karnataka.
They requested the government to extend the deadline for payment of property tax with 5% rebate by another 3 months.
"We have also asked for a separate property tax slab for industrial units to ease burden on them," Sundar said.
They have also requested introduction of an OTS scheme to allow 50% discount on the property tax arrears and waiver of interest/penalty. FKCCI also urged the ministers not to assess tax on the basis of the value of property arrived at by the sub-registrar. "Self-assessment scheme which was in vogue during 2005-2006 should be adopted. A hike in the property tax at the rate of 15% every three years can be adopted," Sundar said.
A proposal was also made to levy separate property taxes on the factory building and open land. In view of heavy losses incurred by businesses and industrial units because of Covid-19 pandemic, a request to give a 50% discount in property taxes for the year 2020-21 and 2021-22 was also made. "Though APMCs and industrial areas and estates are maintained by the authorities, municipal corporations and local bodies are levying property tax. This needs to be corrected and suitable instructions should be given to the local bodies not to levy property tax," the FKCCI president said.
The ministers have reportedly agreed to the requests made by FKCCI and informed that within a week's time, a draft proposal on all these issues would be prepared and a meeting would be convened for which the FKCC office-bearers would be invited for their suggestions and final proposal would be submitted to the cabinet for approval. Rajkumar Khatri, ACS, Commerce & Industries, Gunjan Krishna, Commissioner for Industrial Development, Vinoth Priya, Director, MSME, Ajay Nagabhushan, Secretary, Urban Development, Shivashankar, CEO, KIADB andB B Kaveri, Director, Municipal Administration were present during the meeting.