Trade bodies to move court against MCC’s tax norms

Trade and business organisations in Mysuru have decided to approach the High Court of Karnataka questioning the tax norms stipulated by the Mysuru City Corporation (MCC) on the grounds that it was unscientific and stifling.

At a meeting held here on Sunday representatives of various organisations interacted with legal experts and decided to bring a stay to the MCC’s taxation norms as it was also discriminatory, according to the stakeholders.

The meeting was attended by nearly 40 representatives drawn from hotel industry, theatres, travel association, malls, choultry owners etc.

Mr. C. Narayangowda, president of the hotel owners association, said that there were nearly 3,500 business establishments in the city which have been categorized under “super commercial” category and are levied tax which is almost three times higher than the rate fixed for commercial slab. “It is only in Mysuru that a super commercial category has been introduced to levy taxes and this was not only discriminatory but was stifling business,” said Mr. Narayangowda.

The stakeholders faulted the MCC for not issuing building completion report and said that the MCC was levying double tax on such properties. Even with respect to the annual renewal of trade licence, the fee is doubled for establishments coming under super commercial slab.

Expressing their dismay over the developments, the stakeholders said they had sought relaxation and concession from the government due to loss of business because of the pandemic since March 2020. But instead, the local authorities had levied higher taxation which was also not sustainable for them. The documents and memorandum submitted to the government and the MCCC authorities to reconsider the tax rate, was handed over to legal experts to enable them to present their case in the court.

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