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BMC, industrialists face-off persists
THE FACE off between the Bhopal Municipal Corporation (BMC) and Govindpura Industrial Area over payment of property tax is intensifying with both the sides refusing to budge from their position.
THE FACE off between the Bhopal Municipal Corporation (BMC) and Govindpura Industrial Area over payment of property tax is intensifying with both the sides refusing to budge from their position.
While industrialists feel the BMC is arm-twisting them to extract highly inflated property tax, the municipal corporation has made it clear the power to reduce tax lies with the State Government.
The issue of non-payment of property tax by the units functioning in Govindpura Industrial Area came to the fore last week after the BMC initiated seizure operation.
Opposing the BMC drive , Industries Association, Govindpura alleged property tax was not only hiked in an illogical manner but the corporation never cared to provide any kind of service to the area against the 50 per cent surcharge imposed.
“In 2000, the tax of Rs 10.80 per sq ft per annum was hiked to Rs 27 and after a lot of protests, it was brought down to Rs 18 in 2004. In addition, surcharge at 10 per cent each was charged on five heads like water, light, sanitation, education cess and urban development,” said Industries Association, Govindpura, general secretary Mukesh Sachdeva.
The Government categorised Govindpura into two – residential and commercial/ industrial. “As we do not undertake any commercial activities like running hotels or malls in the area, how come we are charged at par with commercial areas ? ” he asked.
Prior to this, industrialists of Mandideep too had led a protest march against the issue in early 2003. As a resultant, the tax fixed at Rs 36 and Rs 40 was reduced to Rs 10 and 12 respectively. “BMC’s attempt of publicising the issue, alleging industrialists are not paying property tax, sends a negative message to the society, whereas the truth is something else,” remarked an office-bearer of Association of Industries, Mandideep.
On one hand, industrialists feel that even after paying lakhs of rupees as tax to the BMC they are deprived of services, the Corporation seeks to justify its action that no one could get away with the existing law of the land.
“In Indore, the municipal corporation provides services against the tax it collects, whereas in Bhopal or Mandideep, the situation is just the opposite,” alleged Sachdeva.
Justifying its stand, BMC’s zonal officer at Govindpura, Shankar Keshwani alleged apart from the regular property tax, the unit-holders at Govindpura do not want to pay even the surcharge. “BMC can only raise the limit of the tax, whereas power of reducing it, lies with the State Government,” he said.
The association also alleged despite Mayor’s allowing industries to pay at Rs 14 per sq ft annually, the BMC has refused to accept the same. “BMC charges residential and slum-dwellers at Rs 16, how can industrial occupants be charged less than that,” questioned Keshwani. Few industrialists also agreed that they stopped paying tax, after it was hiked to Rs 27.
While the association has now decided to appeal to the State Government to resolve the deadlock, the BMC is preparing to recover its outstanding, reported to be something around Rs 2 crore.
Rates of Property Tax levied on industrial area.
1990-95 : Rs 6 *
1995-2000: Rs 10.80
2000-04 : Rs 27
Post 2004 : Rs 18
* Per sq ft per year. In addition 50 per cent surcharge was levied on tax.
