The MIA welcomes the State government’s decision and says it signals a move towards streamlined governance, ending a 30-year wait for the establishment of an autonomous industrial governance body for the Mysuru region.
| Photo Credit: M.A. SRIRAM
In a major reprieve for industries in Mysuru, the Karnataka government has notified that from now on, property tax in the Special Investment Regions (SIR) should be paid only to the Karnataka Industrial Areas Development Board (KIADB).
This was a long-pending demand of the local industries, as they were burdened with paying taxes to local bodies without the benefits of infrastructure development. The property tax paid to local bodies was in addition to the tax paid to the KIADB for maintenance, and it was proving to be an economic burden.
Consequent to the notification, all industries that come under the Mysuru-Thandya SIR will pay tax to the KIADB. This would cover Kadakola, Adakanahalli, Kochanahalli, Immavu, Thandya 2nd phase first stage, Thandya 2nd phase, Thandya Industrial Area, Women’s Entrepreneur Park 1st phase and 2nd Phase, and Single Unit Complexes and Film City.
Industrial units at Hebbala, Hootagalli, Belavadi, Belagola, Koorgalli, Hebbal 2nd Phase Industrial Area, BEML Industrial Area, and Single Unit Complexes coming in the Mysuru-Hebbalu SIR are also covered by the latest notification. The new directive came into effect on April 1.
The move not only brings long-awaited clarity to administrative confusion and marks a significant milestone in the formal roll out of the Industrial Township Authority under which a single agency will collect the taxes.
Suresh Kumar Jain, secretary of the Mysuru Industries Association (MIA), said the issue was raised repeatedly for almost 30 years, and has come to materialise now. All these years, in the absence of a single-window agency, local gram panchayats and town municipal corporations would levy tax at a rate which was higher than any other region in Karnataka, he added.
The services, however, were not commensurate with the tax collection, Mr. Suresh Kumar said, pointing out that industries in Hootagalli had paid a property tax of ₹60 crore to the local body, but not even 60 paisa had been spent on the development of the industrial area.
The MIA had also made a formal representation to Selvakumar, Principal Secretary of the Department of Industries and Commerce, recently and had sought clarification on tax collection, especially after the SIRs were announced in February 2025.
MIA president P. Vishwanath welcomed the government’s decision and said it signals a move towards streamlined governance, ending a 30-year wait for the establishment of an autonomous industrial governance body for the Mysuru region.
As the KIADB will now be entrusted with collection of property tax in the two SIRs, the industries in Mysuru have urged the authorities to withdraw the maintenance fee of ₹15,000 per acre that was payable to KIADB.
The MIA has urged the government to assign the KIADB the responsibility of maintenance of infrastructure, including roads, street lighting, and water supply.
Stakeholders believe assigning KIADB as the single authority for tax collection would not only streamline administration but also ensure infrastructure was developed to attract fresh investment to Mysuru, whose main economic driver so far remains tourism and service-related industries. This, it is argued, will not only help give a push to industrial growth but will diversify the economy, making it more robust.
Published – April 10, 2025 04:55 pm IST
