Ludhiana News/PD Sharma to Dy CM Punjab- Keep level of property tax low; to keep industry afloat in competition

Ludhiana, December 2, 2013: Apex Chamber of Commerce and Industry (Punjab) president PD Sharma has
written to Sukhbir Singh Badal, Deputy Chief Minister, Punjab, regarding property tax on industry, urging to  keep the level of property tax low; to keep industry afloat in competition.
He said industry of Punjab feels jubilant at your big initiative to attract prized investment into Punjab. You can expect unstinted cooperation from Industry in this respect. Punjab is the home of MSME sector but this sector cannot survive without big industrial units. This pattern has already shown decent results.
Home grown big units of Punjab have risen to this stature from low base. The networking between MSME & big units is the primary reason for development of Industry in Punjab.
While attracting big investment from outside the basic pattern of Industrial development in Punjab has to be kept in mind. It has also to be ensured that this new investment does not harm the valuable existing industrial structure.  Industry is sure that you will keep these factors in mind.
The transaction cost of Industry is very high in Punjab which affects the competitive capacity of Punjab’s Industry. In the new property tax regime industry is upset due to some irrationalities.
Industrial units big or small are scattered in cities & towns outside the designated areas like focal point. The property tax is levied on the basis of the price of land fixed by the collector.
There is huge difference in the price between the land in focal point & other areas. Obviously a part of the Industry could be accommodated in the designated areas & the remaining had to come up at other places. All the same the competition for industry of Punjab is the same for every Industrial unit irrespective of the location. From this angle it is imperative to levy property tax at the same level irrespective of the location.
There is another anomaly in fixing the price of land. The price of Industrial land is taken at par with that of commercial land. This is unjustifiable. The rates for Industrial land are very lower compared to the commercial rates. In the productive sector like industry low level of rates should be taken. It is therefore urged that it may be ensured that land rates with respect to property tax should be kept much lower for industry.
“While giving concession to outside investors it may kindly be ensured that there is no heart burning for the existing industry”, Sharma writes, adding, “A bird in hand is better than two in the bush.”/ ludhiana news online, ludhiana news in English, ludhiana news, ludhiana current news, ludhiana news live, Ludhiana breaking news, Ludhiana headlines, Ludhiana latest news, punjab news, india news, Ludhiana industry news