Ahmedabad: After almost two decades, the 75% reduction in property taxes that the Municipal Corporation of Ahmedabad used to extend to the GIDC estates of Vatva, Naroda, Odhav and Kathwada will now be reduced to only 50%. Despite constant requests from professional associations, the AMC has refused to reverse its decision to revise the reimbursement rate for industrial zones. The standing committee will give formal approval to the proposal on Thursday. It was at the beginning of January that the AMC submitted to its permanent committee a proposal to revise the discount rate from 75% to 50%.
Until now, AMC retained only 25% of the total property taxes paid and returned 75% of the sum collected to the GIDC estates to carry out the development and maintenance of civic works such as roads, water and sewers. . A senior AMC official said that the civic body collects about Rs 25-30 crore in property tax per year from GIDC estates such as Vatva, Naroda, Odhav and Kathwada New Industrial Estate as well.
“In 2003, AMC set up this incentive to promote industrial activity in GIDC estates. However, now, especially when the civic body itself is in financial shock due to the loss of income during the lockdown, we have decided to reduce this incentive,” an AMC official said.
In an earlier interview with TOI, former president of the Association of Vatva Industries, Ankit Patel, said: “Property tax is an important cost element for industries. Reduced property tax refunds will surely increase compliance costs for individual industries. However, more so, it will also impact industry associations. Maintaining the common infrastructure is already a challenge with 75% off. With the proposed reduction, it will be even more of a challenge for associations.