Industrial units functioning in notified industrial parks and estates are keenly looking forward to a government circular exempting them from the purview of tax collection by local government bodies.
The Kerala State Small Industries Association (KSSIA) said some local bodies like Kollam Corporation had exempted units in the Mundakkal development plot from payment of building and employment taxes and licence fee.
KSSIA president A. Nizarudeen said owners of units functioning in 119 industrial estates and upcoming private industrial estates hoped that a State-wide circular would cover all of them.
While other States have notified industrial townships to smoothen the road for the functioning of industrial units, Kerala has issued orders on notified industrial estates. Mr. Nizarudeen said such a notification was also part of efforts being made by the government to make Kerala an investor-friendly destination.
Industrial unit owners are of the view that the success of two consecutive years of a campaign to launch new enterprises has been due to measures adopted to make investment procedures speedy, transparent, and without impediments.
It is learnt that the government has been assured that there will be no revenue loss on account of local bodies not getting the share of fees under various heads. Instead, industrial parks generate substantial employment and boost government revenue through other tax heads like GST.
Meanwhile, private industrial estates are showing great promise with 17 of them being approved by a high-power committee appointed for the approval of private industrial estates. Two of the industrial estates, Palakkad and Kannur, have already taken off. The State Cabinet finally approved a proposal for setting up private industrial parks in the State under the Private Industrial Estate Scheme 2022 following amendments to a similar scheme issued in 2017.
