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Web Exclusive | March 2017

Dual tax hits Surat textile shop owners

Textile shop owners in Surat are an unhappy lot today, for they have been asked to pay property tax for the shelf space created inside the shops for storing the grey fabrics and finished stock. They are now seeking the dual property tax to be abolished. Most shops in the textile markets have been built at a height. Shop owners have created shelves to store the bundles of grey fabrics and finished stock since there are no huge storage godowns.

A dual tax was imposed on the textile shops having storage shelves. The property tax department was asked to consider the shelves as godown and thus shop owners were asked to cough up dual tax — the entire shop as well as the shelf area. Shop owners in the textile markets say they have been paying the dual property tax since 2014 but most textile markets still do not get an adequate water supply, lack basic amenities and have to contend with an unhygienic environment.

Owners have purchased shops from realtors who built the textile markets. The textile industry in Surat is mainly engaged in yarn production, weaving, processing as well as embroidery. The Middle East is a major export market for Surat’s textile products.
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