Sachal TMC: Hyderabad SITE body assails illegal tax collection practices

HYDERABAD: The Chairman of the Hyderabad SITE Association of Trade and Industry, Zubair Ghangra, has strongly condemned the illegal tax collection practices and the threatening behaviour allegedly being carried out by officers and staff of the Sachal Sarmast Town Municipal Committee (TMC) against industrialists and traders.

Ghangra stated that the staffs of Sachal Sarmast TMC is unlawfully collecting various charges within the SITE industrial area without any legal authority, including generator fees, vehicle parking charges, road usage fees, and other unauthorized levies. He said that these illegal actions are not only severely disrupting industrial operations but also reflect a pattern of corruption, coercion, and intimidation against the business community.

He further emphasized that, according to SITE Limited, the legal authority to collect any kind of tax or fee within the designated SITE area rests exclusively with SITE Limited itself. Despite this clear jurisdiction, the Sachal Sarmast Town Municipal Committee continues to forcibly collect taxes, creating confusion and harassment for industrialists and traders.

The Chairman pointed out that these unlawful collections have significantly increased the cost of doing business, forcing several industrial units to reduce their production capacity. He added that arbitrary and illegal tax demands are discouraging investment and severely undermining investor confidence. Ghangra warned that such practices are extremely harmful to industrial growth and employment opportunities across the province. He revealed that formal letters highlighting these issues have already been submitted to the relevant higher authorities; however, no clear decision has yet been made regarding the jurisdiction and domain of tax collection, allowing the problem to persist.

The Chairman urged the Local Government Department, the Commissioner Hyderabad, the Mayor of Hyderabad, the Deputy Commissioner, and other concerned authorities to immediately intervene, put an end to the illegal, harassing, and threatening actions of the Sachal Sarmast Town Municipal Committee, and clearly define the legal jurisdiction to protect traders, industrialists, and the general public from unnecessary harassment and financial loss.

He warned that if these illegal practices are not stopped immediately, the business community will be left with no option but to resort to protests and pursue all available legal remedies. Ghangra further stressed that the business community is already facing serious challenges due to a lack of transparency in the taxation system and mistrust regarding the proper utilization of collected taxes. In this regard, the SITE Association, along with chambers and other trade organizations, has repeatedly raised concerns and staged protests.

Zubair Ghangra said that the business community will not tolerate illegal tax collection, intimidation of businessmen, or arbitrary administrative actions under any circumstances. He demanded that the concerned authorities take immediate notice, ensure justice, and safeguard the constitutional and legal right of traders and industrialists to conduct business without harassment.

Copyright Business Recorder, 2025