Ahmedabad, Apr 4 (KNN) As the Lok Sabha elections approach, Gujarat’s Micro, Small and Medium Enterprises (MSME) sector is intensifying its efforts to resolve the long-standing issue of double taxation faced by numerous units operating from Gujarat Industrial Development Corporation (GIDC) estates.

This contentious matter has remained unresolved despite promises from the state government before the 2022 assembly elections.

The crux of the problem lies in the dual taxation imposed on GIDC units, which are required to pay both GIDC service charges and local property tax.

To address this, the government had proposed a solution akin to the system implemented by the Ahmedabad Municipal Corporation (AMC), wherein GIDC estate associations would be reimbursed 75 per cent of the property tax paid.

However, this commitment remains unfulfilled, leaving industries burdened with taxes for services they do not receive.

“We had been assured that relief would be provided to GIDC units subjected to double taxation,” stated an office-bearer of a leading industry association.

“The reimbursement would have eased the financial strain on industries and enabled them to allocate funds towards estate maintenance and infrastructure development. Unfortunately, no reimbursement agreements have materialised thus far,” he added.

With approximately 150 GIDC estates affected by this issue, local industry associations are now gearing up to highlight the matter directly to candidates contesting the upcoming Lok Sabha elections.

The resolution of double taxation remains a critical priority, alongside other pressing demands such as the impact fee, a one-time settlement scheme, and policies governing the sale of products manufactured within GIDC units.

Ajit Shah, President of the Sanand Industries Association, emphasised the urgency of addressing these concerns, stating, “As Gujarat takes the lead in propelling India towards a USD 5 trillion economy, it is imperative that industries receive world-class infrastructure and a conducive policy environment to compete globally. We are hopeful that issues such as the establishment of a solid waste site and a Common Facility Centre will be expedited, and we are actively raising these matters with our Member of Parliament.”

The chemical units in Ahmedabad have also been advocating for the construction of a deep-sea discharge pipeline, further underscoring the MSME sector's ongoing efforts to address infrastructure and policy challenges hindering their operations and growth potential.

As the election season intensifies, the MSME sector's long-standing demands have taken centre stage, with industry associations determined to ensure that their voices are heard and their concerns addressed by the incoming government, fostering an environment conducive to the sector's sustained growth and contribution to the state's economic development.

(KNN Bureau)