E-Paper
Property tax from industries to be deposited with Mohali MC before SPV
Civic body has demanded 5% share for tax collection; industries department had earlier decided to directly deposit tax with SPV
Even though the government had decided that property tax from industries be deposited with the special purpose vehicle (SPV) notified for the maintenance of industrial areas last month, latest developments indicate that the tax will now have to be first deposited with the Mohali municipal corporation (MC) before it’s given to the SPV.
The decision was taken in a recent meeting of all SPV stakeholders to deposit the tax money with the MC first.
The civic body has also demanded 5% share for collecting taxes.
The SPV has been formed under a government of India scheme and the industrial areas under its purview will be in phases 4,5, 7, 8, 8-A, 8-B, 9 and 9 (extension).
“It has been decided that the entire tax will be collected by the civic body and then handed over to the SPV. As in the case of Ludhiana, only 15 % of the tax was collected by SPV. We have also demanded that some percentage of share should be given to the civic body for the services of tax collection as our staff will be involved in the collection,” said a senior MC official who did not want to be named.
Sanjeev Vashist, vice-president of the SPV, said no decision had been made on the MC’s share. “If they demand 5% or 6% of the total share, we will give it to them, but the final decision will be taken in the next meeting of the stakeholders.
MC ACCUSED OF NOT UTILISING TAX AMOUNT
Property tax of ₹4 crore collected every year by the MC from industries will, from this year, be deposited with the SPVs. Over the last three years, even though the MC collected ₹12 crore, it spent only ₹1 crore on the development of the industrial area.
Two decades have passed since the industrial focal points were created, but basic amenities are still missing in the area. Restaurants and recreational spots are missing in Phases 7, 8, 8-A and B, in the industrial area, which is being projected as an IT hub. Most professionals have no choice but to depend on roadside eateries for their meals.
IN NUMBERS
