The Indian Industries Association (IIA) has urged the Uttar Pradesh government to rationalise house tax levied on industrial establishments in the state.
“We had taken up the case of rationalisation of house tax way back in 2005, but nothing fruitful has so far emerged,” IIA president Parveen Sadana said.
The chamber pointed out that the municipal corporations had not segregated industrial property for the purpose of levying property tax. Hence, they attract the same rate of tax as shops and other commercial establishments.
“The industrial establishments have very less covered work area compared with commercial establishments as it is mandatory for them to leave at least 60 per cent of land surrounding the factory vacant,” Sadana said, adding the municipal corporations were levying property tax on these vacant plots besides the covered area.