Octroi in Mumbai, LBT in Pune?

- Advertisement -

Saturday,  June 15, 2013: While octroi will continue in Mumbai, LBT has already been imposed in many other cities of the state. Why this discrepancy in Maharashtra?

By EB Bureau

After a month-long agitation by the state traders, the Maharashtra government has decided to postpone the enforcement of the local body tax (LBT) in Mumbai until a consensus is reached with the traders. This was decided at a recent meeting between chief minister Prithviraj Chavan and the Federation of Associations of Maharashtra (FAM). This means that octroi will continue in Mumbai till a decision is reached by June end. However, the LBT has already been enforced in many other cities of Maharashtra like Thane, Navi Mumbai and Pune. While the Pune traders were actively participating in the agitation to revoke LBT from Pune, no decision has been taken yet on that front.

- Advertisement -

According to Mitesh Mody, action committee member, FAM, and committee member, All India Radio and Electronics Association, west zone (AIREA WZ), the LBT will continue in the cities where it has already been imposed, until the proposals of the Mumbai traders are accepted by the government, as the traders want uniformity in the LBT system across Maharashtra.

Says Mody, “In an earlier meeting with the traders, the state chief minister, Prithviraj Chavan, had said that traders have no issues in the other cities where the LBT has already been imposed. However, this is not correct. In the first month, the traders were happy with the LBT as they thought that they got a respite from the corrupt officials who collected octroi. But when they realised that the harassment continues under the LBT also, they too turned anti-LBT. The powers given to low level officers of the municipal corporation are being misused and the traders are finding the whole process impractical. So, now traders from Pune have also given it in writing to the chief minister that they don’t want to be assessed by the municipal corporation.”

Other demands met

The government will now set up a committee led by a chief secretary, which will finalise the LBT model for Mumbai, informs Mody. Traders have been given the right to nominate their representatives on this committee, which would submit its report by June end. The committee will also look into the traders’ demand that the sales tax department should be given the power to collect and assess LBT. After the partial success of the meeting between the chief minister and FAM, traders have suspended their protest till the committee submits its report.

Demand for uniformity in LBT system

There are two Acts that govern the duty and tax structure within the state—the Maharashtra Municipal Corporation Act and the Bombay Municipal Corporation (BMC) Act. The first has already been passed in the Vidhan Sabha, after which the LBT came into being in Maharashtra. This implies that for all municipal corporations, except Mumbai, the law for the LBT was passed by the state legislature in December 2009. It has been delayed for Mumbai because the necessary provisions for the introduction of the LBT are yet to be incorporated in the Bombay Municipal Corporation Act, which would also require legislative approval.

“The BMC Act, which is only for Mumbai, hasn’t been passed yet and it will be now amended by the newly formed panel of traders and government representatives,” informs Mody.

Now the traders want to ensure that their accountability to the municipal corporation for LBT is shifted to the state’s sales tax department. “We also want uniformity in the LBT system. For traders who have offices in multiple cities of Maharashtra, the tax would differ from city to city. We want the rate of tax to be linked to the city in which a firm’s registered office is located,” adds Mody.

- Advertisement -

Most Popular Articles

LEAVE A REPLY

Please enter your comment!
Please enter your name here
Captcha verification failed!
CAPTCHA user score failed. Please contact us!

Exclusive

Low-Speed Scooters, E Rickshaws Major ‘Headache’ For EV Task Force?

0
Going ahead, the situation for low-speed electric two-wheeler and electric rickshaw retailers and makers looks a little cloudy. The bigger ones may want to join these segments...

Growth Opportunities Connected With The Growing Semicon EcoSystem In India

0
India must concentrate on electronics products and semiconductor components, as progress in one area reinforces the other. The country can unlock immense economic opportunities...

“Don’t Let Designations Become A Wild Goose Chase”

0
In his childhood, he possessed just one sweater, meant to last through many winters. He could not join IIT Roorkee because the cost of...

Buzz

Saudi Arabia Targets Lithium For EV Goals

0
Saudi Arabia has begun investigating techniques to extract lithium from seawater and saline byproducts of oil production, working in partnership with Aramco. The outcomes...

BluSmart Hits $60 Million Annual Run Rate

0
The fleet operator has achieved a 102% annual run rate increase compared to the previous year, growing from USD 30 million in FY23 to...

SOA Collaborates With Kaynes Semicon

0
This collaboration aims to meet the increasing demand for skilled professionals in the field, leveraging the expertise of Perceptive Solutions.  Siksha ‘O’ Anusandhan Deemed to...

Important Sectors

Saudi Arabia Targets Lithium For EV Goals

0
Saudi Arabia has begun investigating techniques to extract lithium from seawater and saline byproducts of oil production, working in partnership with Aramco. The outcomes...

BluSmart Hits $60 Million Annual Run Rate

0
The fleet operator has achieved a 102% annual run rate increase compared to the previous year, growing from USD 30 million in FY23 to...

SOA Collaborates With Kaynes Semicon

0
This collaboration aims to meet the increasing demand for skilled professionals in the field, leveraging the expertise of Perceptive Solutions.  Siksha ‘O’ Anusandhan Deemed to...

StoreDot And Polestar Unveil First 10-Minute EV Charge

0
A 77kWh battery pack featuring StoreDot’s ultra-fast charging high-energy (300Wh/kg) silicon-dominant cells was successfully charged from 10% to 80% in less than 10 minutes...

Debashis Mitra Named President Of Kinetic Green’s 3-Wheeler Business

0
Mitra will become President of the 3-wheeler business following Paul Zacharia's retirement in June 2024. Kinetic Green Energy and Power Solutions Limited, a prominent Indian...

Manufacturing

Honda Invests $11 Billion In Canadian EV Value Chain

0
As part of its strategy to establish eco-friendly EV and battery facilities in Ontario, Honda's EV value chain will cover every stage of EV...

Honda plans major EV factory construction in Canada,

0
Honda's dedication to this facility reflects its wider ecological objectives, which include a target to only offer zero-emission vehicles by 2040 and to attain...
Sona Comstar

Sona Comstar Launches Mexico Plant For North American EV Demand

0
The new facility, established to address the increasing demand for premium driveline solutions for BEVs in North America, will focus on manufacturing differential assemblies...

Sterling Tools Inks MoU With Yongin For EV Components Facility

0
Sterling Tools announced that this strategic partnership is anticipated to bring in Rs 250 crore in business over the next five years. This collaboration...

Tata Elxsi-Renesas MCU Boosts EV Cost Efficiency And Market Speed

0
The Motor Control Unit's modular, scalable design facilitates integration across various EV applications, reducing time to market by 40%, lowering design and development costs...