The government of Karnataka notified Thandya, near Nanjangud, under Mysuru-Thandya Special Investment Region on February 10, 2025.
| Photo Credit: SRIRAM MA
In a major reprieve for industries in Mysuru, the Karnataka government has notified that henceforth property tax in the Special Investment Regions (SIR) should be paid only to Karnataka Industrial Area Development Authority (KIADB).
This was a long-pending demand of the local industries as they were burdened with paying taxes to local bodies without the benefits by way of infrastructure development. The property tax paid to local bodies was in addition to the tax paid to KIADB for maintenance, and it was proving to be an economic burden.
Consequent to the notification, all industries that come under Mysuru-Thandya SIR will pay tax to KIADB. This would cover Kadakola, Adakanahalli, Kochanahalli, Immavu, Thandya 2nd Phase Ist stage, Thandya 2nd phase, Thandya Industrial Area, Women’s Entrepreneur Park Ist and 2nd Phase, 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 Mysuru-Hebbalu SIR are also covered by the latest notification. The new directive came into effect on April 1, 2025.
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, 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.
But the services were not commensurate with the tax collection, said Mr. Suresh Kumar who pointed out that industries in Hootagalli had paid ₹60 crore by way of property tax to the local body ‘but not even 60 paisa‘ had been spent on development of the industrial area.
The MIA had also made a formal representation to Dr. 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
