Monday, September 23, 2013: There is a reason for traders to be happy in Mumbai because Chief Minister, Prithviraj Chavan has given in principal nod to reduce Local Body Tax (LBT) to 1.5 per cent from earlier two per cent LBT.
“The CM has formally agreed to have minor reduction in the existing LBT levied in Navi Mumbai. Whether to reduce the tax or not depends on the Navi Mumbai Municipal Corporation (NMMC). If the civic body sends a proposal to reduce the existing LBT, as promised, the CM will positively consider it,” The Times of India quoted a senior official close to CM’s office.
The official even informed that prior to coming at any solid decision on reducing LBT, the local corporation will first take into consideration its pros and cons.
The CM provided approval with regard to reducing the LBT at a meeting held in Mumbai and chaired by Chavan and others, who participated includes Thane Guardian Minister Ganesh Naik, Jarhad, Navi Mumbai Mayor, Sagar Naik, local MP Sanjeev Naik and MLA Sandeep Naik.
According to the NMMC officials, before the implementation of LBT, the local body was involved in collecting cess that amounted to Rs 4.25 billion (Rs 425 crore) annually. But, post introduction of this new tax structure, the approximate collection accounts for around Rs 8.50 billion (Rs 850 crore).
