MIDC industries to face double taxation

As per the GR issued by Rural Development Ministry, Government of Maharashtra dated September 11, 2019, MIDC has been authorised to collect Gram Panchayat (GP) Tax levied on the industries located in the MIDC areas. As per the GR, the industries which are attached to a particular Gram Panchayat, now shall be paying the tax to MIDC and not directly to the particular Gram Panchayat. The various heads under which the GP Tax is charged like Building Tax, Property Tax, Safai Tax, Light Tax etc.. shall now be in the purview of MIDC. As per the provisions in the GR, the tax and fees shall be as per the Act of 1960 passed by the Legislature of Maharashtra. GP Tax bills shall be handed over to the local office of MIDC by Gram Panchayat.

MIDC then shall make the provisions to issue bills to the respective industrial unit. The units shall be required to pay the GP Tax to MIDC and they shall get the receipt of the payment from MIDC. Of the total tax paid by the industries, 50 per cent shall be kept by MIDC and rest 50 per cent shall be handed over to the respective Gram Panchayat. This amount shall be deposited by MIDC into a newly opened bank account authorised by BDO specifically for this purpose. As per the GR, MIDC shall deposit this amount by 7th of every month in this account. The 50 per cent amount kept by MIDC with them shall be treated as administrative charges for collection.

Also, MIDC has to provide basic facilities like road light, drainage, water supply, fire fighting services and most importantly garbage collection and disposal which they are not doing at the moment. Chief Executive Officer of MIDC has been entrusted to inform concerned officers of MIDC to contact all the respective Gram Panchayats and implement these provisions mentioned in the GR. When contacted, Nitin Lonkar, President of Butibori Manufacturers Association (BMA) welcomed the GR but expressed that industries are already paying to MIDC the charges under various heads like fire, drainage, water etc., and hence, if MIDC is going to keep 50 per cent from the GP Tax for similar services which they are already providing and charging in their water bills, then it will be double taxation. “Industrial units will be burdened by two various Government agencies for the same services which is not fair,” he suggested.

“MIDC should waive off the various charges it is currently charging in their water consumption bills. 10 per cent it can keep as administrative charges for collection of GP Tax,” he demanded. C G Shegaonkar, President of MIDC Industries Association (MIA) said, there are around 1,000 industrial units in MIDC Hingna Industrial Estate. Approximately Rs 35 lakh to Rs 40 lakh tax were recovered every year from Hingna MIDC Area by four Gram Panchayats.

“This responsibility is now given to MIDC with 30% increase in existing rates every 4 years, out of which 50 per cent will be retained by MIDC towards administrative charges and balance will be passed on to Gram Panchayats. This amounts to double taxation, since MIDC is already recovering such charges through water bills,” he said. The entire infrastructure like electricity, water, roads are provided and maintained by MIDC. Hence there is no proprietary to transfer 50 per cent amount to Gram Panchayat unless they agree to collect from door to door and arrange processing/disposal of waste generated by industries. Double taxation by Maharashtra Industrial Development Corporation must be withdrawn and tax burden be reduced,” he demanded.