The Indian Express                22.05.2013

BMC ropes in TISS for study on octroi

EVEN as the state government is set to frame a new policy on LBT, BMC has appointed Tata Institute of Social Sciences (TISS) to conduct a study on octroi system before it is replaced.

The civic administration has set aside Rs 25.16 lakh for the study. A 30 per cent rise in cost is expected as TISS plans to attend workshops with other study groups across the country.

"We want to make the transition from octroi to LBT as easy as possible for traders. TISS will help us smoothen the transition and also help set rates and norms so that revenue neutrality is maintained when LBT replaces octroi," a senior civic official said.

He added that the corporation would conduct its own study for which a committee of retired civic officials would be formed.

BMC has held two meetings with TISS and an interim report on the transition phase is expected in September. A final report is expected by December.

However, BJP corporators are opposed to the proposal.

"The government is yet come out with its LBT policy so what is the hurry? What if the state government changes its mind? The expenses on the study will go waste," said BJP corporator Manoj Kotak, who is also a standing committee member.