The Urban Development Department of Maharashtra has requested the Nashik Municipal Corporation (NMC) to submit a new proposal for imposing property taxes on industries. This proposal suggests reintroducing industrial slabs instead of using the existing commercial slabs. The industrial rate classification for property tax was eliminated in 2018 by the ex-commissioner of NMC. The NMC has submitted a proposal to the government for consideration. However, concerns have been raised about the potential impact of higher property taxes on industrial establishments and future investments in the Nashik region.
The Urban Development Department of Maharashtra has requested that the Nashik Municipal Corporation submit a new proposal for imposing property taxes on industries. This new plan would feature an industrial slab instead of the existing commercial slab.
According to a recent correspondence, the NMC has made a request to the state government to allow them to impose industrial property taxes on industries. Although the letter didn't specify the legislation that authorized the collection, it was implied that it could be done under some Act. Therefore, the government has requested additional information pertaining to the topic in the latest proposal.
In 2018, the ex-commissioner of NMC, Tukaram Mundhe, eliminated the industrial rate classification for property tax. Ever since, the local government has been gathering funds from various property types by utilizing two distinct classifications: residential and commercial.
Industries have been requesting to pay property tax based on industrial rates since the rates for residential and industrial categories are nearly five times lower than those of commercial tax slabs. The taxation criteria for industrial and commercial properties differ, as the former is taxed at a fixed rate of Rs 5 per square metre while the latter requires Rs 44 per square metre.
The issue was raised by industrialists in December to state industries minister Uday Samant, who instructed the NMC to impose taxes on industrialists based on their respective industry categories. As per instructions, NMC's commissioner Chandrakant Pulkundwar has instructed the tax department to commence the procedure of reintroducing industrial slabs. As a result, the administration has submitted a proposal to the government for consideration.
Industrialists had taken up the issue in December with state industries minister Uday Samant, who had directed the NMC to collect taxes from industrialists according to the industrial slab. Following the directions, NMC Commissioner Chandrakant Pulkundwar, had directed the tax department to initiate the process for the re-introduction of industrial slabs, and accordingly, the administration had sent a proposal to the government for approval.
The President of NIMA, Dhananjay Bele, expressed concern that the imposition of higher property taxes on industrial establishments could potentially hinder new investments in the Nashik region. Since April 2018, numerous industries have been burdened with exorbitant property taxes. Therefore, it is imperative for the NMC’s governing body to rapidly resolve the matter.
Industrial property refers to a property utilized for activities such as manufacturing, processing, storing goods, or selling them to consumers. There are various types of industrial buildings, which serve purposes such as generating energy, fabricating goods, extracting resources, and stockpiling materials such as textiles, oil-based products, timber and paper items, substances, polymers, and alloys.
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