Lucknow: The Uttar Pradesh govt has rejected demands to extend proposed property tax relief for micro and small industrial units to petrol pumps and other MSME-registered commercial establishments, stating that the concession will apply only to industrial units.The decision was communicated while disposing of objections and suggestions received on a draft amendment to the Uttar Pradesh Municipal Corporation (Property Tax) Rules. The proposed change is aimed at reducing the property tax burden on micro and small industrial units situated within municipal corporation areas.The Uttar Pradesh Petroleum Traders Association had urged the state to include fuel retail outlets in the relief, arguing that many petrol pumps are registered as micro, small and medium enterprises and are run by small businessmen. The committee constituted by the state govt turned down the request, noting that petrol pumps are separately classified under the property tax rules and therefore cannot be treated as industrial units for the purpose of the proposed concession.Trade bodies also sought to widen the scope of the relief to cover commercial establishments registered under the MSME Act. Govt rejected this demand as well, clarifying that the amendment is intended only for micro and small industrial units as defined by the industries department, and not for commercial enterprises.In another key decision, the state refused requests to apply the concession retrospectively from 2021, when revised property tax rates were implemented in several municipal corporations. Officials said any benefit under the amendment would be available only from the date the final notification is published.Govt also declined demands for age-based rebates on industrial buildings. Industry representatives had argued that factories and industrial sheds face higher wear and tear due to machinery and industrial activity. The state maintained that age-linked rebates under existing provisions apply only to self-occupied residential properties and cannot be extended to industrial premises.Separately, industrial associations from Agra contended that units located in industrial estates maintained by industrial authorities should be exempt from municipal property tax or charged only user fees for civic services. The state rejected the argument, reiterating that property tax is a statutory levy applicable to all properties within municipal corporation limits, regardless of maintenance arrangements or other charges paid to industrial authorities.
