Power tariff, property tax hikes will pinch K’taka industries hard: FKCCI

NT Correspondent

Bengaluru: A delegation of industries from various sectors in all operational sizes from across the state on Thursday claimed that the hikes on power tariffs and property taxes would pinch them hard. The delegation led by the Federation of Karnataka Chamber of Commerce and Industry (FKCCI) president MG Balakrishna addressed the media over their pressing concerns. The Karnataka Electricity Regulatory Commission (KERC) has announced a power tariff hike of 36 paise per unit effective from April 1.

They claimed that this would profoundly impact them. “The cumulative effect of successive tariff hikes in recent years has put undue financial pressure on Karnataka’s industrial sector, increasing operational costs and reducing competitiveness,” said Balakrishna. Increased manufacturing costs, reduced profit margins and impact on employment are the alleged results of the hike. “Industries may be forced to reduce their workforce or cut down on expansion plans due to higher overheads,” the delegation stated.

The government’s proposal to increase the guidance value in property taxes has been contested by the FKCCI, ever since it was introduced last year. “It will directly result in a rise in property tax, significantly impacting industrial and commercial property owners.

Higher property tax, higher land acquisition costs, impact on real estate development and burden on medium and small businesses with rented premises will be the consequences of a of a higher guidance value, claimed the delegation. M G Rajagopal, president of the Karnataka Small Scale Industries Association, and R Shivakumar, president of the Peenya Industries Association, were part of the delegation.