MSMEs in Coimbatore hit by ‘multiple levies’ collected by Corporation

Coimbatore MSMEs facing multiple tax burdens from Corporation officials, leading to industry stifling; associations plan to meet Commissioner.

Most of the Micro, Small and Medium-scale Enterprises (MSMEs) in Coimbatore city are visited by “temporary staff” of the Coimbatore Corporation in the last two weeks asking the units to pay trade licence fee, professional tax, or garbage fee.

“We are harassed by the Corporation and are burdened with multiple levies,” alleges J. James, president of the Tamil Nadu Association of Cottage and Tiny Enterprises (TACT). “Our members in all the micro clusters are facing problems because those visiting the units are quoting different amounts as taxes,” he claims.

For instance, one unit was asked to pay ₹2,500 as trade licence fee for six months. “The MSMEs are hit hard by the high electricity charges and we have been protesting against it. The units work out of rented buildings. Now, they have to pay garbage fee, trade licence fee and professional tax. There is unstable flow of orders and not even 8% margin for the orders that we get. In such a situation, collecting so many levies from the micro and cottage units will stifle the industry in Coimbatore. We plan to meet the Corporation Commissioner in this regard after Pongal,” he said.

According to C. Natarajan, president of the Coimbatore SIDCO Industrial Estate Manufacturers’ Welfare Association (COSIEMA), the visits by people asking the units to pay different taxes has increased in the last 15 days. The COSIEMA has asked the members to wait as it plans to meet the Corporation Commissioner in this regard.

Mani (name changed), who runs a micro unit at Edayarpalayam, said those visiting the units asked the micro and small-scale industry owners to fill in forms and make a payment immediately. There should be proper communication to the industries and they should be given time to make the payments, he said.

The field level Corporation officials said they will look into the issue.

(With inputs from