The Times of India 02.04.2013
Nagpur Municipal Corporation hopes to garner Rs 484cr from LBT
NAGPUR: Octroi, that was
bread and butter of local bodies since 149 years, slid into history as
Nagpur Municipal Corporation (NMC) implemented local body tax (LBT) from
midnight of March 31-April 1. The civic body is hoping to garner Rs 484
crore from LBT in 2013-14. The estimated revenue is Rs 56 crore less
than estimated revenue from Octroi for the fiscal.
Following municipal commissioner Shyam Wardhane's directions, additional deputy municipal commissioner Ravindra Kumbhare and assistant commissioner (LBT) Mahesh Dhamecha visited all major octroi check posts at midnight and closed the counters. Twenty one of 35 check posts were shut. The remaining 14 posts situated on major roads will continue for issuing transit passes.
Kumbhare formed a three-member team each for all ten zones and head office to facilitate registration of traders for LBT. He told TOI the team would comprise one inspector and two staffers. "They were given training and posted to all zones. They will ensure distribution and collection of registration forms. The team will also visit traders and encourage them to register for LBT," he said.
The NMC is expecting to register 1 lakh traders under LBT. Around 28,000 already registered with the sales tax department were declared as deemed approved on Monday. Besides, 115 more traders submitted application forms. Total 22,000 forms were distributed among the traders. All those eligible for LBT will have to ensure registration by April 28 and deposit the amount by May 10 or would be liable for penalty 10 times the amount due.
The octroi levy for 2012-13 was Rs 483 crore. The collection missed the target of Rs 575 crore set by the standing committee in its budget. Civic chief had estimated Rs 540 crore in his budget for 2013-14. However, chairman of standing committee Avinash Thakre said administration revised the estimation to Rs 484 crore in LBT. "I have decided to present budget between April 15 and 20. The information about estimated revenue was asked from the administration and it came up with figure of about Rs 484 crore," he said.
It was estimated that it will take sometime to streamline the LBT system. The estimated revenue is only Rs 1 crore more than what was recovered under octroi system in 2012-13. The revenue would have been increased at least 10% as natural growth under octroi system. The administration hopes to bridge the gap from stamp duty and other sources.
Following municipal commissioner Shyam Wardhane's directions, additional deputy municipal commissioner Ravindra Kumbhare and assistant commissioner (LBT) Mahesh Dhamecha visited all major octroi check posts at midnight and closed the counters. Twenty one of 35 check posts were shut. The remaining 14 posts situated on major roads will continue for issuing transit passes.
Kumbhare formed a three-member team each for all ten zones and head office to facilitate registration of traders for LBT. He told TOI the team would comprise one inspector and two staffers. "They were given training and posted to all zones. They will ensure distribution and collection of registration forms. The team will also visit traders and encourage them to register for LBT," he said.
The NMC is expecting to register 1 lakh traders under LBT. Around 28,000 already registered with the sales tax department were declared as deemed approved on Monday. Besides, 115 more traders submitted application forms. Total 22,000 forms were distributed among the traders. All those eligible for LBT will have to ensure registration by April 28 and deposit the amount by May 10 or would be liable for penalty 10 times the amount due.
The octroi levy for 2012-13 was Rs 483 crore. The collection missed the target of Rs 575 crore set by the standing committee in its budget. Civic chief had estimated Rs 540 crore in his budget for 2013-14. However, chairman of standing committee Avinash Thakre said administration revised the estimation to Rs 484 crore in LBT. "I have decided to present budget between April 15 and 20. The information about estimated revenue was asked from the administration and it came up with figure of about Rs 484 crore," he said.
It was estimated that it will take sometime to streamline the LBT system. The estimated revenue is only Rs 1 crore more than what was recovered under octroi system in 2012-13. The revenue would have been increased at least 10% as natural growth under octroi system. The administration hopes to bridge the gap from stamp duty and other sources.
