The Karnataka Chief Minister, Mr D.V. Sadananda Gowda, has promised to address the problems of small and medium enterprises, says the Karnataka Chamber of Commerce and Industries (KCCI).

Interacting with a delegation of KCCI and a few north Karnataka industrialists, Mr Gowda said he was aware of the problems faced by them and sought time to set right the disparities in property tax and trade license issues.

Tax burden

According to the KCCI president, Mr N.P. Javali, among the problems faced by north Karnataka industries and entrepreneurs is levy of motor vehicle tax by both the State government and the Hubli-Dharwad Municipal Corporation (HDMC). The latter is collecting it as a sub-tax.

Solid waste management tax: KCCI said the municipal corporation, is already collecting taxes under various heads such as health tax, water tax, cess etc. It has now started collecting solid waste management tax, which the Chamber described as an unnecessary burden on the tax payers.

Different rates of tax: There are different rates of property tax in Mangalore, Mysore, Belgaum and Hubli-Dharwad. There should be a common tax structure at par with BBMP (Bangalore), the Chamber said.

Penalties: A five per cent tax rebate is offered on payment of the property tax in advance by April. If it is paid after June, the tax payer has to pay 2 per cent as a penalty for every month, which amounts to 20 per cent penalty on property tax, which is against the principles of the accounting system, it said.

Trade licence: The traders and industrialists are already paying tax under various heads to the government. Again levying the trade license fee, renewal fee and penalty is unjustified and they should be withdrawn, the KCCI said.

>anil.u@thehindu.co.in

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