To ease tax burden on industries and encourage entrepreneurs to set up units, the State Cabinet on Thursday decided to create a separate slab of property tax to be levied on industries/industrial areas developed by KIADB and KSSIDC falling under urban local bodies (ULBs)
This will be done by bringing in amendments to the Karnataka Municipal Corporations Act, 1976, and the Karnataka Municipalities Act, 1964, sources in the Government said.
Older sections
As per section 101(2) of the Karnataka Municipalities Act, 1964, ULBs are empowered to levy property tax on commercial, residential, and industrial buildings/industrial areas. The ULBs are levying property tax on industrial buildings as per rates fixed for commercial buildings, as there is no separate slab for industries. The former Chief Minister B.S. Yediyurappa, in his 2021–22 Budget, had proposed to have a new slab in property tax for industries in ULB limits.
Several industry bodies and groups had made representations to the Government claiming that property tax currently being levied on industries was too high. Large and Medium Industries Minister Murugesh R. Nirani is said have been pursuing this with Chief Minister Basavaraj Bommai and the Urban Development Department.
A Bill in this regard will be tabled in the winter session of the State legislature in Belagavi. This is expected to encourage establishment of more entrepreneurs to set up industries which would, in turn, generate more jobs.
The ULBs would incur financial difficulties on account of change in property tax slabs, but this loss would be compensated over a period of time due to industrial growth and resultant economic boost, it is argued. This would enable the ULBs to carry out more development works with more financial inflow, sources said.
Bill approved for giving land occupancy rights
The State Cabinet on Thursday approved a Bill on amending the Inams Abolition Act to allow farmers to submit applications for claiming occupancy rights, sources in the Government said. When the Act was brought in earlier to provide rights to those cultivating them, a large number of farmers had not applied due to lack of awareness.
The Bill will be tabled in the winter session of the State legislature in Belagavi which would start from Monday. Nearly 70,000 acres come under the Inam land category in different parts of the State.
These land were given as Inam (prize) during the British rule and farmers were cultivating them from many years. Such farmers would become the owners of the land, for which they need to file applications, sources said.
