The Times of India              28.10.2013  

Aurangabad Municipal Corporation unlikely to achieve local body tax target from fireworks dealers

AURANGABAD: While the rain gods smiled and pockets are flush for Diwali firecracker shopping, the Aurangabad Municipal Corporation (AMC), which is eyeing a figure of Rs 10-12 lakh as local body tax (LBT) from fireworks dealers in the current season, could miss its target. Blame it all on 2012's leftover stock: dealers sitting on a pile from last season are keen to push these products, ones on which they have already paid the tax.

An officer in the civic body's LBT department said that in 2012, the AMC had mopped up Rs 10 lakh as LBT from fireworks dealers. "This year, the AMC has received Rs 2.5 lakh as LBT so far. We hope that the LBT collected would be in a range of Rs 8 to 9 lakh, but chances of it crossing the 2012 figure are very thin," he said.

The officer said that the trade was a short-term business, wherein a major chunk of LBT is collected in the initial days. The AMC has set up a special counter for LBT collection, along with a bank counter. It has issued temporary registrations to more than 250 dealers and has been collecting LBT from them on the spot.

On an average, the city registers a turnover of Rs 2.5 crore in the fireworks trade and there are close to 250 stalls set up at five different places in the city. The market at the Zilla Parishad ground is the main one, where most wholesalers and retailers set up shop. The temporary market is to remain till November 6, 2013 (it was opened on October 22).

Manik Mahitole, president, Aurangabad City Firework Dealers Association, said with poor buyers' response the last season, dealers could not sell the complete stock. "Due to poor rainfall in the Marathwada region in the 2012 monsoon, the trade had witnessed a fall of about 25 per cent. Dealers had to carry forward the stock," Mahitole said.

Mahitole said satisfactory rainfall in the current season has created a positive wave among dealers, who are expecting the business to register at least 10-15 per cent growth, compared to the previous year. "However, most of them have initially ordered lesser quantity of products," he said.

Concerned over the pricing structure, Mahitole said a 10-15 per cent hike in the cost of fireworks was also troubling the dealers. "Although price rise in this range is a routine phenomenon, it would certainly leave an impact on the buying pattern," he said.

Vilas Khandelwal, treasurer of the association who's selling fireworks at the Zilla Parishad ground, felt that customers this time were "quite enthusiastic". "People are buying the products without any hesitation, in good quantities," Khandelwal said.