Cancel octroi, levy local body tax instead' industry, trade bodies eye LBT

NASHIK: Following the cancellation of privatisation of octroi recovery, trade bodies across the city are now hoping to bring into effect Local Body Tax (LBT) as a substitute for octroi.

The Nashik Municipal Corporation (NMC) have been at loggerheads with industry assiociations over the octroi issue for several years, with the latter demanding that octroi be scrapped.

The NMC had privatised the recovery of octroi which further annoyed trade groups and they threatened an indefinite stir iover the issue. Even as the newly-elected governing body of the NMC cancelled privatization of octroi recovery, trade groups are now demanding that octroi itself be cancelled and replaced with LBT.

"We are not against octroi but are against the manner in which it is recovered. Traders and industrialists are regularly harassed at octroi check posts. We are ready to pay taxes but they should be free from hassles at octroi check posts. LBT is therefore the best alternative to octroi," said Sanjay Bodke, senior vice-president, MaharashtraChamber of Commerce, Industry and Agriculture (MCCIA).

"We are making efforts to understand how LBT can be implemented within the city of Nashik. We have also met with CM Chavan on the issue and were informed that the state has decided to implement LBT in those municipal corporations where such a demand is made from industry groups," Bodke said. But he also shed light on why the NMC may not be responding to the LBT issue.

"It would be expected that the NMC would send a proposal to the government seeking LBT implementation but this is not possible due to vested interests operating within the civic body. We are therefore planning to meet the CM in Mumbai on April 23, and plan to further urge the NMC to send a proposal regarding LBT to the state as well," Bodke added.

In the last week of March, all 35 industries and trade associations had come together and jointly decided to appeal to the state government to cancel octroi and introduce LBT as a substitute. Dhananjay Bele, president, Nashik Industries and Manufacturers' Association said an internal meeting was being planned to determine further course of action.

Regards,
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CA.C.V.PAWAR
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