The Times of India            27.11.2013

Action against LBT defaulters to continue

PUNE: The Pune Municipal Corporation (PMC) has appealed city traders and businessmen to cooporate with the civic body and pay Local Body Tax (LBT) to avoid stringent action.

The corporation started its drive against defaulters last week, after the state government gave permission to raid establishments of traders and businessmen who had failed to pay LBT.

"The PMC will continue daily action against defaulters. Traders and businessmen who have paid LBT have no reason to get anxious. However, those who have evaded the tax and have not paid it despite repeated reminders will face stringent action," Vilas Kanade, joint commissioner of the civic LBT department, said in a press release issued on Monday.

The state government replaced octroi with LBT and the new tax structure came into force from April 1. All traders who import goods worth over Rs 5,000 into the city have to register with the local civic body. Till date, the PMC has collected Rs 600 crore as LBT revenue.

"On Wednesday, we took action against malls on Shankarsheth Road, in Vadgaonsheri and in Vimannagar. Operators of these malls have imported goods worth Rs 70 lakh in the last few days and have not paid a single rupee of LBT. We have also checked malls in Yerawada and on Baner Road. A beer shop in Warje Malwadi has imported stock worth Rs 11 lakh and evaded the levy. The PMC is taking action against all these defaulters," Kanade said.

The civic body expected to collect annual revenue of around Rs 1,657 crore from octroi this year. After the implementation of LBT, it has been able to collect about Rs 101 crore every month, which will take its annual revenue to about Rs 1,212 crore. Octroi, property tax and development charges were the main sources of revenue for the PMC. However, with the LBT still in its nascent stage, the finance department team working on the 2014-15 civic budget has limited revenue sources.