The Indian Express                       02.04.2013

BMC gears up for octroi naka bandi

After spending over Rs 34 crore on modernisation of the five octroi nakas in the city, BMC has not only had to halt the project halfway but also start phasing out the check posts to make way for a local body tax (LBT) system.

More than 10,000 vehicles carrying goods enter the city through these points at Dahisar, LBS Marg, Eastern Express Highway, Mulund-Airoli and Vashi every day, generating an average revenue of Rs 2 crore in the form of octroi.

Vigilance squads keep a strict eye on incoming trucks that have to go through a series of checks and scans after which goods are weighed on an automatic weigh-bridge.

"Details of every incoming and outgoing vehicle are stored in our software and CCTV cameras ensure octroi is not evaded. The cameras are linked to a main server and one can check proceedings at octroi nakas sitting in an office," explained an official.

While octroi has been the biggest money spinner for the cash-starved BMC, officials claim LBT, which comes into force in October, will also ensure good income.

They, however, fear security at these major entry and exit points of the city could be a concern after octroi nakas are phased out.

Octroi is a tax levied on goods at the time of entry in a city.

It is collected in cash on daily basis. LBT, on the other hand, is a lumpsum charged on the value of goods.