Karnataka SMEs upset with proposed hike in property tax
Updated: Nov 18, 2015 03:04:56pm
Bengaluru, Nov 18 (KNN) Karnataka Small Scale Industries Association (KASSIA) is quite disappointed with the Bangalore Municipal Corporation’s proposal to hike property tax with effect from April 2016.
“While it is certainly not our case that there should be no hike, SMEs strongly feel that the time for such a hike is not now, though the rates have not been hiked since 2008,” said Kassia’s Vice President, V A Padmanabha.
According to him, the hike in property tax is not justified considering the deplorable condition of existing infrastructure such as roads, streetlights, drainages and pavements, most of which are in a pathetic state of disrepair. In particular, he pointed to the infrastructure surrounding industrial areas which is poorly maintained.
As far as roads are concerned, their condition remains pathetic year after year without any perceptible improvement particularly in industrial areas such as Peenya, Kamakshipalya, Veerasandra, Rajajinagar, Sunkadakatte, Magadi Road, among others. “This makes life very difficult for industries operating in these areas; it badly affects their movement as well as general performance.
He pointed out that in most industrial areas, streetlights just do not work. For example, in Yeshawanthpur Suburb and similar areas where garment factories are located women workers face a lot of hazards while commuting due to poor streetlights. They are often harassed, subjected to mugging and chain snatching, even molestation. In spite of this, things have not improved over the years and seem to get worse.
Storm water drains are completely clogged in industrial areas as a result of which there is water logging which breeds mosquitoes and other disease causing germs and insects. The drains are left unattended and remain in a state of disrepair for months and years together.
With regard to garbage and solid waste disposal, the situation is dismal with waste piled up all round. “There seem to be no convincing efforts on the part of the authorities to grapple with this massive problem. This has resulted in serious deterioration of hygiene and health badly affecting the quality of life. It also affects business operations negatively lowering productivity and increasing the costs of doing business,” Padmanabha said.
According to him, exports in particular are badly affected as overseas buyers tend to view these deficiencies in a negative light as a poor ecosystem that affects quality and delivery and not conducive for doing business.
All this has led to worsening of the quality of life in industrial areas. It also affects industrial investments negatively due to the negative connotations it sends to everyone impacting industrial operations in many ways resulting in poor productivity and performance, he said.
KASSIA, therefore, sincerely feels that it is inopportune for the BBMP to hike the rates now.
“What they must do is tighten their belts, improve the management practices all around, ensure delivery and quality of services and improve the lot of the city by putting the available resources to the best possible use. They can think of raising the tax in course of time as things improve. This in our opinion is the best way for BBMP under the circumstances than go for a hike of property tax at this point of time,” he concluded. (KNN Bureau)
“While it is certainly not our case that there should be no hike, SMEs strongly feel that the time for such a hike is not now, though the rates have not been hiked since 2008,” said Kassia’s Vice President, V A Padmanabha.
According to him, the hike in property tax is not justified considering the deplorable condition of existing infrastructure such as roads, streetlights, drainages and pavements, most of which are in a pathetic state of disrepair. In particular, he pointed to the infrastructure surrounding industrial areas which is poorly maintained.
As far as roads are concerned, their condition remains pathetic year after year without any perceptible improvement particularly in industrial areas such as Peenya, Kamakshipalya, Veerasandra, Rajajinagar, Sunkadakatte, Magadi Road, among others. “This makes life very difficult for industries operating in these areas; it badly affects their movement as well as general performance.
He pointed out that in most industrial areas, streetlights just do not work. For example, in Yeshawanthpur Suburb and similar areas where garment factories are located women workers face a lot of hazards while commuting due to poor streetlights. They are often harassed, subjected to mugging and chain snatching, even molestation. In spite of this, things have not improved over the years and seem to get worse.
Storm water drains are completely clogged in industrial areas as a result of which there is water logging which breeds mosquitoes and other disease causing germs and insects. The drains are left unattended and remain in a state of disrepair for months and years together.
With regard to garbage and solid waste disposal, the situation is dismal with waste piled up all round. “There seem to be no convincing efforts on the part of the authorities to grapple with this massive problem. This has resulted in serious deterioration of hygiene and health badly affecting the quality of life. It also affects business operations negatively lowering productivity and increasing the costs of doing business,” Padmanabha said.
According to him, exports in particular are badly affected as overseas buyers tend to view these deficiencies in a negative light as a poor ecosystem that affects quality and delivery and not conducive for doing business.
All this has led to worsening of the quality of life in industrial areas. It also affects industrial investments negatively due to the negative connotations it sends to everyone impacting industrial operations in many ways resulting in poor productivity and performance, he said.
KASSIA, therefore, sincerely feels that it is inopportune for the BBMP to hike the rates now.
“What they must do is tighten their belts, improve the management practices all around, ensure delivery and quality of services and improve the lot of the city by putting the available resources to the best possible use. They can think of raising the tax in course of time as things improve. This in our opinion is the best way for BBMP under the circumstances than go for a hike of property tax at this point of time,” he concluded. (KNN Bureau)
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