Double tax on rentals stunting growth: RCCI

Rajkot: The Rajkot Chamber of Commerce and Industry (RCCI) has formally appealed to the Rajkot Municipal Corporation (RMC) to abolish the double tax levied on rented commercial properties in the city.In a representation to RMC commissioner Tushar Sumera, RCCI president V P Vaishnav highlighted the burden the policy places on traders and property owners. According to the chamber, the municipal tax structure is inherently unequal: if a commercial property is used by its owner, a single tax is applied, but if the same property is rented out, the tax doubles. The chamber said local businesses — many operating from rented shops, showrooms and offices — are already under an "unbearable" financial strain. Traders are battling losses compounded by the war situation and a sharp shift in consumer behaviour, "with nearly 50% of retail trade having moved online". In this backdrop, the RCCI said levying a double tax is "truly unjust". The RCCI also warned that "this dual tax policy is actively stunting Rajkot's economic growth and deterring companies from outside from investing in the city". Instead of supporting the local business ecosystem, the policy is causing heavy losses. Drawing a comparison with cities such as Mumbai, the chamber noted that equitable tax structures for owners and tenants are vital for urban growth and for attracting investment. The RCCI urged the RMC to scrap the double tax provision with immediate effect and implement a uniform single-tax policy. The chamber said the relief would revive local trade, encourage outside investment and ensure all-round development of the city.