Mangaluru: The Urban Development Department in Government of Karnataka is planning to amend the Karnataka Municipal Corporation Act 1976 and to form Industrial Township Authority in order to redress the problems of industries.

The Minister for Urban Development and Housing U T Khader informing about the plan of bringing an amendment to the existing Act on Monday, June 10 said that the formation of Industrial Township Authority intends to help the industries to rectify the problems and to reduce the complex procedures of tax collection. Earlier, local bodies use to collect taxes from the industries. But, after the formation of Township Authority, the authority itself will collect taxes from the industries and look after all the issues pertaining to industries. Among the total collection of taxes, 30 per cent tax would be paid to the local bodies and the remaining 70 per cent will be used by the authority itself.

Khader informed that there will be eight members in the Industrial Township Authority, which includes five from different industries, one each member from the Industry and Commerce Department, Urban Development Department and local bodies. This amendment decision will be put forth in the monsoon session in order to receive approval for the same.