Mysore: About a decade and a half ago, Mysuru Municipal Corporation (MCC) introduced large or super commercial tax category to help boost its revenue, the civic agency has decided to withdraw the slab, which means that all commercial establishments mccThe jurisdiction will come under a single bracket from April, which marks the beginning of the new financial year.
Many business establishments that have been paying heavy taxes since 2007 have welcomed the development with a sigh of relief. Among those classified under ‘super commercial establishments’ were hotels, cinema halls and convention centres, all of which had to pay additional taxes to the MCC.
What added to the misery of the owners of these establishments was that Mysore was the only city in the state to have such a system.
C Narayana Gowda, president of the Mysore Hotel Owners Association, pointed out that the two tax slabs for commercial establishments did not even exist in Bengaluru. He said the business community in Heritage City had been demanding the removal of the second slab for a long time. “Convention centres, cinema halls and hotels have been asked to pay one per cent additional tax.
Now that the battle is won, the owners of these establishments are relieved, but not entirely happy. “For the last 15 years, we had to pay more tax. This was a decision taken by a former MCC commissioner. We all have lost money because of this policy. For example, if the property owner was paying around Rs 1 lakh as tax every year under the previous system, he would now have to pay around Rs 72,000. More importantly, the cess to be levied on establishments depends on their location,” said Gowda.
He said that the MCC had decided to remove the slab after the business community of the city approached the High Court to challenge the policy. He said that out of 15,000 commercial establishments in Mysore, one thousand have been categorized as ‘super commercial’.
MCC Commissioner G Laxmikanth Reddy Confirmed that starting April, there will be only one slab for all commercial establishments.
Many business establishments that have been paying heavy taxes since 2007 have welcomed the development with a sigh of relief. Among those classified under ‘super commercial establishments’ were hotels, cinema halls and convention centres, all of which had to pay additional taxes to the MCC.
What added to the misery of the owners of these establishments was that Mysore was the only city in the state to have such a system.
C Narayana Gowda, president of the Mysore Hotel Owners Association, pointed out that the two tax slabs for commercial establishments did not even exist in Bengaluru. He said the business community in Heritage City had been demanding the removal of the second slab for a long time. “Convention centres, cinema halls and hotels have been asked to pay one per cent additional tax.
Now that the battle is won, the owners of these establishments are relieved, but not entirely happy. “For the last 15 years, we had to pay more tax. This was a decision taken by a former MCC commissioner. We all have lost money because of this policy. For example, if the property owner was paying around Rs 1 lakh as tax every year under the previous system, he would now have to pay around Rs 72,000. More importantly, the cess to be levied on establishments depends on their location,” said Gowda.
He said that the MCC had decided to remove the slab after the business community of the city approached the High Court to challenge the policy. He said that out of 15,000 commercial establishments in Mysore, one thousand have been categorized as ‘super commercial’.
MCC Commissioner G Laxmikanth Reddy Confirmed that starting April, there will be only one slab for all commercial establishments.