Imposing holding tax on Jamshedpur industrialists unfair: Inder Agarwal

Plan to organize meeting between AMC Administrator and entrepreneurs

Mail News Service

Jamshedpur, August 4: Inder Agarwal, President of the Adityapur Small Industries Association (ASIA), voiced concerns over the confusion surrounding the imposition of holding tax on industrialists. The Adityapur Municipal Corporation has denied industrialists access to the new water supply scheme due to the holding tax issue. Agarwal argued that it was unjust to burden entrepreneurs with holding tax, especially since the industrial area was outside the Municipal Corporation’s jurisdiction.

No amicable settlement was arrived at during a recent meeting with the Municipal Corporation administrator. Consequently, ASIA sought intervention from the Deputy Commissioner of Seraikela-Kharsawan district. Agarwal planed to organize a meeting between the Municipal Corporation Administrator and local entrepreneurs to find a solution.

Agarwal explained that the Adityapur Industrial Area Development Authority (AIDA), now JIADA, was established in the 1970s. From then until 2003, no holding tax was demanded by the Municipal Corporation. However, following the first municipal elections after Jharkhand’s state formation, the demand for holding tax took root. ASIA raised the issue with the then District Deputy Commissioner Ramesh Gholap, who clarified that there was no provision for the Corporation to collect holding tax from industrial areas on a lease basis. This matter was put on hold.

Despite this, the Municipal Corporation imposed holding tax on some units, leading to legal challenges. Some units paid the tax to avoid complications, while others contested the charges in the Jharkhand High Court. The court did not intervene, considering it a matter between two departments. The Municipal Corporation sought guidance from the Urban Development Department but received no response.

Agarwal emphasized that the Adityapur Industrial Area units fell under the jurisdiction of JIADA’s regional office, which leased land to industrial units and oversaw infrastructure development. These units also paid land rent, levies, and street light charges to JIADA. Correspondence from the former Regional Director of JIADA, Amit Kumar, and the Regional Deputy Director indicated that holding tax should not be imposed on industrial units within the authority’s area.