KASSIA for abolition of trade license

Speaking to Deccan Herald KASSIA President Prakash N Raikar said the trade license and the property tax of small entrepreneurs has become a burning issue but has not been sorted out till date.

Recently, the BBMP expanded its coverage area, bringing in Seven CMCs (City Municipal Corporations) under it, which houses the industrial estates around the City. Coming under BBMP, SSI units will now have to renew trade license every year, which was not the case earlier.

“This is a serious matter. Our contention is that when we are covered by other laws, going for trade license becomes difficult. Every year, renewal takes place wherein taking consent from local bodies, involves long procedures,” Raikar said.

He pointed out that out of 6 lakh SSI units, only 25,000 are located in government-promoted industrial estates and the rest are located either in private estates or residential areas. All these units are getting affected by the mandatory trade license norm. Raikar added, “Trade license is practiced only in Karnataka.”  

The association has also appealed for reduction of property tax as under the Self Assessment Scheme for SSIs, the tax rate has been doubled from Rs 1.25 per sq ft for own use and Rs 5 for rented properties.

He also urged that respective ESCOMS should provide uninterrupted power to SSIs and industry in general, which provide jobs, revenue and taxes to the State.  “We have also challenged the authority to adopt the loadshedding for industrial feeders in KERC (Karnataka Electricity Regulatory Commission),” Raikar said.

The industry body acknowledged that in recent years, subsidy from State government has taken a backseat and long pending subsidy of about Rs 220 crore to promote industries in backward areas is yet to be disbursed.

The 4 per cent interest subsidy to encourage technological development for loan taken from KSFC of about Rs 8 crore is also pending. But the capital subsidy given by the central government to improve the technology and quality of the product comes promptly, he said.

KASSIA has urged banks to be liberal when extending loans to SSIs as the cost of credit has gone up. To overcome the shortage of skilled manpower, KASSIA plans to set up skill development centres at Bangalore, Mysore, Mangalore, Hubli, Belgaum, in the next six months with financial assistance from the Centre.

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