The Indian Express                       02.04.2013

On PCMC pitch, industry gets what it sought

Even as the indefinite strike called by shopkeepers and traders began on on Monday, the Pimpri-Chinchwad Municipal Corporation (PCMC) announced the LBT rates, which it claimed were lower than the rates applicable under octroi regime. However, the shopkeepers rejected the rates, calling them misleading and demanding scrapping of LBT.

PCMC chief Shrikar Pardeshi told a press conference that the LBT rate on industrial goods had been pegged at 2.4 per cent which was what the industry had demanded. "We had sent industry's suggestions to the state government which has agreed to levy 2.4 per cent LBT on industrial goods. Since their major demand has been accepted, the industry has reason to feel happy," he said. The earlier octroi rate on industrial goods varied from 3 to 3.5 per cent.

MCCIA director-general Ananth Sardeshmukh welcomed the new 2.4 per cent rate on industrial goods. "We had demanded LBT rates around 2 per cent. We are okay with the 2.4 per cent rate. In fact, PCMC had in fact already got it approved in its general body meeting," he said. Sardeshmukh said the industrial sector in Pimpri-Chinchwad would not participate in the indefinite bandh.

Another significant rate reduction relates to application of .01 to .1 per cent rate on gold and 0.1 per cent to 0.5 per cent on silver and valuable items. The earlier octroi rate varied from 1 to 2 per cent. "With this reduction, the gold price and silver should come down. However, it is up to the jewellers to take the call," said Pardeshi.

The jewellers are, however, not ready for rate reduction immediately. "As there is no clarity on many points, we will wait for some time before deciding," said Saurabh Gadgil of P N Gadgil Jewellers.

The rate on essential goods including food grains will vary from 0.5 per cent to 2 per cent. Pardeshi said the rates on semi-luxury items will now vary from 3.5 to 5. Earlier, they were pegged at 3 to 4 per cent. Similarly, on luxury items the rates would vary from 7 to 10 per cent. Earlier, they stood at 7 to 8 per cent. The new LBT regime exempts gas cylinders, cycles, cycle parts, idols made of sand and plaster of Paris.

"The rate on cylinders should reduce by Rs 20," said PCMC LBT chief Ashok Munde.

Civic officials said computers, household appliances, four-wheelers and cigarettes would cost more.