The MP Micro, Small and Medium Enterprises Department has issued an order stating the industrial units running in the industrial areas of the State government are exempted from paying property tax to the civic bodies as per the law.
A much-awaited demand of Federation of Madhya Pradesh Chambers of Commerce and Industry and other industrial organizations in Madhya Pradesh, the property tax will not be charged by the municipal bodies on the industrial units established in industrial areas, Federation of Madhya Pradesh Chambers of Commerce and Industry Vice President Himanshu Khare said.
The Principal Secretary, Micro, Small and Medium Enterprises Department of Madhya Pradesh government has issued the order to this effect.
It is noteworthy that for many years this demand was being made by the entire industries and there was a lot of doubts about this issue amongst the entrepreneurs working in the industrial sectors all over the state, he said.
According to provisions of clause (2) of section 127A of Madhya Pradesh Municipality Act 1961, property tax will not be applicable on properties owned by the Central Government, State Government and urban bodies.
The industrial plots in industrial areas are given lease by the Industries Department of the Government of Madhya Pradesh for a certain period, since the lease is given by the government, so the ownership of the said plot belongs to the government and the entrepreneur is the only lease holder who pays the maintenance fee to the Industries Department.
The industry department is responsible for the maintenance of industrial areas, in lieu of which the department charges a fixed amount from all the entrepreneurs according to the area of the plot and property, so the urban bodies do not have to collect property tax from the industries established in the industrial areas.
Federation of Madhya Pradesh Chambers of Commerce and Industry President Dr Radhasharan Goswami, Vice President Himanshu Khare, Ashok Kapur, Rajiv Agarwal, Arun Pawar etc. Working committee members have expressed happiness over the above ordinance which will be beneficial for the entrepreneurs.
