From Our Special Correspondent
Daijiworld Media Network

Bangalore, May 14: The Associated Chambers of Commerce and Industry of India (ASSOCHAM) has urged the State Government to make suitable amendments in Karnataka Municipal Corporation Act 1972 to ensure that industry was free of the requirement to obtain trade license from municipal bodies.

At a meeting with Chief Minister D V Sadananda Gowda, Southern Region ASSOCHAM Co-Chairman Jacob Crasta urged the Government to abolish issue of trade licence to industries by urban local bodies.

Responding to the demand, the Chief Minister has agreed to set up a committee to look into the matter.

In a press release here, ASSOCHAM said all establishments falling under municipal limits were required to obtain trade license as per KMC Act.

With the expansion of Bangalore City Corporation limits, many industrial areas around Bangalore, which were earlier out of municipal limits, were subject to the provisions of the Act.

Crasta said that obligation on part of industry to obtain trade license was rather regressive and meaningless.

``Industry was already saddled with a number of regulatory requirements and was subject to almost 56 different enactments making it mandatory to obtain different approvals/permissions,” Crasta said urging the State Government to relax the norm.

Issue of property tax applicable on industry was also discussed in the meeting, the press release said.

Crasta said that it was erroneous to categorise industrial properties as “commercial” and demanded that industry must be categorised separately.

He said small and medium scale industries should be subject to a concessional rate of property tax.

At a time when the Sate was making all out efforts to woo fresh investors, ASSOCHAM said it was ironical that the industry was being ``subject to some outdated and meaningless legislations/regulations.”