KIADB Clarifies Tax Authority in Foxconn Dispute

The Karnataka Industrial Areas Development Board (KIADB) has said that it is the only authorised body to collect property tax from industries operating in the Devanahalli Special Investment Region (SIR). This clarification comes as a dispute has grown between electronics manufacturer Foxconn and the local Koyira Gram Panchayat over tax payments and other issues.

The issue began when the Gram Panchayat sent a notice to Foxconn. In the notice, the Panchayat accused the company of not paying local property taxes. It also claimed that Foxconn had violated building rules and had not provided enough jobs to people from nearby villages.

The Panchayat gave the company seven days to respond and solve the problems. It warned that if the demands were not met, it would take legal action. It also threatened to organise a mass protest in the area.

However, KIADB stepped in and clarified that it has the legal authority to collect property taxes from industrial units in the Special Investment Region, not the local Panchayat. Officials said that industries set up within the SIR fall under KIADB’s control, and taxes must be paid to the board as per the rules.

This clarification is expected to reduce confusion over tax collection and administrative control in the region. Meanwhile, the situation has drawn attention as Foxconn is a major investor and employer in the area, and any dispute could affect industrial development and local employment.

Authorities are likely to hold discussions to resolve the matter peacefully and ensure smooth operations for both the company and the local community.