The Indian Express 02.04.2013
Local body tax likely to generate Rs 60-cr revenue for Pune Cantt
Abolition of octroi might look like a dent in the revenue of the Pune Cantonment Board (PCB), but that is only for a short while. In the long run, the implementation of local body tax (LBT) may actually spell boon for the board that has in the recent past taken measures to multiply revenue.
The board, which has already moved an LBT draft to the Ministry of Defence (MoD) may generate a whopping Rs 60 crore a year from the new tax regime. The octroi managed to generate only 18 crore per annum.
Speaking to Newsline, vice-president of PCB Arti Mahajan said that LBT may generate close to Rs 60 crore as revenue per year. "If we deduct the expenses from the revenue, the income will still be higher than what the board earned from octroi.
The PCB, besides its other sources of income such as property tax, advertising tax, vehicle entry tax and others, was primarily dependent on octroi that it got as a share from the Pune Municipal Corporation (PMC).
Till date, the civic body had been giving octroi collection of around Rs 1.5 crore per month to the board.
The PCB had recently taken steps to increase its revenue by proposing betting tax, higher VET and revised advertising model.
Despite zero octroi and the actual imposition of LBT likely to take two more months, PCB officials said the board is better placed compared to Khadki Cantonment Board (KCB), which will be banking on savings and arrears to sustain expenses till the news tax regime actually takes off.
The board will have to appoint a joint CEO as well as a set of administrators to implement the new tax regime. "We are better placed financially. We are expecting Rs 9 crore as octroi arrears from the civic body," said an official.
While the board has decided to opt for the same structure as PMC in the imposition of LBT, the tax will be charged with retrospective effect given the board is already lagging behind PMC in its implementation.
"We will impose it with retrospective effect and the traders will have an option of making payments in monthly, quarterly, half-yearly and on annual basis," an official said.
