Committee to study demand for abolishing super commercial tax

Mysuru City Corporation Commissioner Lakshmikanth Reddy on Saturday said a committee headed by the Additional Commissioner and comprising four to five officers from the MCC will be constituted to study the demand from traders for abolishing the “super commercial tax”.

The Commissioner also suggested to the traders to constitute a committee on their side having four to five members to come out with solutions to the issue so that neither the MCC nor the traders are affected over the decision on the collection of “super commercial tax”.

Speaking after meeting traders, businessmen and commercial establishments from Mysuru on the issues concerning property tax, trade licence and other tax related matters, he said the revenue of MCC will fall suddenly if the “super commercial tax” was withdrawn at one go besides causing a big burden to the corporation.

“Let both the committees coordinate and discuss what best solution can be found on the issue so that the decisions did not affect both the parties. If the committees can meet once in a week and come up with their suggestions, a final decision can be made based on their observations. Whatever decision is taken will come into effect from the financial year of 2022-23 and not immediately. Now, everyone has to pay their taxes. This year, the super commercial tax has not been enhanced. Moreover, Mysuru cannot be compared with other cities,” he explained.

Earlier, Federation of Organisations and Associations of Mysuru Vice-President C. Narayana Gowda questioned the logic behind separating the taxes into “commercial” and “super commercial tax”. This has caused a burden to cinema halls, hotels and marriage halls. The then Commissioner Shilpa Nag had categorised the “super commercial” into “commercial B” but the tax rate remained the same, and did not help the traders, he said.

Properties without completion reports from the MCC are paying double taxes. Also, the renewal fee of trade licences of properties without CR has been increased. A 15 per cent fine and 18 per cent interest are being levied on the properties for renewing the trade licence, he told the meeting.

Also, the MCC levies separate fees on the commercial properties having ACs and generators even though the requisite electricity costs were paid to the electricity supply company. Such additional fees must go, he demanded.

Vinay of Marriage Halls’ Association said the MCC should consider the cost incurred on the construction of the commercial properties while calculating the tax. However, the MCC was fixing the tax based on the present construction costs which was unscientific. The MCC should not levy tax based on the Bengaluru model. Bengaluru cannot be compared with Mysuru and so also the tax calculation, he argued.

M.R. Rajaram of Mysuru Cinema Exhibitors Association sought simplification of the tax system here while stating that the tax in Mysuru has to be calculated in 48 stages while it was done in 7 stages in Bengaluru. This needs to be simplified for everyone’s good, he suggested.

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Printable version | Oct 18, 2021 12:15:57 AM | https://www.thehindu.com/news/national/karnataka/committee-to-study-demand-for-abolishing-super-commercial-tax/article36536840.ece

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