Urban News

PCMC officials said that the municipal corporation expects to earn a revenue of Rs 780 crore in the current fiscal year, 2009-10. The municipal corporation was planning to increase taxes noting its falling octroi collections and over-dependence on octroi income to run the house. Recession, octroi waiver to new businesses and concessions in octroi rates to various businesses had an effect on the octroi collection in the past year.

Pimpri-Chinchwad, known as an auto hub, house many auto manufacturers and factories manufacturing auto components. As demands saw a slump last year, the manufacturers were forced to lower their production volumes, which even affected the volumes of the auto component manufacturers. This brought an indirect effect on the octroi collection of the municipal corporation.

In the financial year 2008-09, the octroi department had set a target of Rs 780 crore as octroi revenue, but could collect only Rs 717 crore. The target was the same in 2009-10. Though the collections in the first seven months showed a decline.

From April to October 2009, the octroi collection of PCMC was less than that from April to October 2008. But PCMC collected Rs 5.61 crore more in November 2009 as compared to 2008. In December 2009, the difference increased to Rs 20 crore. Octroi collections touched new heights in January 2010, when the PCMC collected Rs 23.65 crore more as compared to January 2009. In January 2009, the octroi department collected Rs 41.80 crore, the collections increased to Rs 65.45 crore in January 2010.