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Taxation

PMC coffers ring as LBT pours in

Friday, 24 May 2013 11:35 administrator
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The Indian Express                 24.05.2013

PMC coffers ring as LBT pours in

With various trade bodies beginning to pay local body tax (LBT), the tax department of Pune Municipal Corporation (PMC) has collected Rs 4.5 crore in the last three days. The total tax collected this month has gone up to Rs 47 crore so far.

As on Thursday, 57,840 traders have registered for LBT. As many as 6,218 traders registered for LBT on Wednesday, the highest on a day.

The implementation of LBT was fiercely protested by the traders who had gone on an indefinite strike. They had contended that the implementation of LBT would be detrimental in carrying out business. The traders called off their strike after 13 days when the state government conceded to most of their demands.

The state government has extended the deadline to register for LBT to June 20, which is the last extension. As of now, the civic body would not collect any fine or interest from traders. The tax can be paid at the branches of HDFC, ICICI, YES Bank, Indusind Bank and Bank of Maharashtra. The help line number for LBT cell is 25501431.

 

Implementation of Local Body Tax may be delayed in Mumbai

Friday, 24 May 2013 08:26 administrator
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The Economic Times                24.05.2013

Implementation of Local Body Tax may be delayed in Mumbai

Implementation of Local Body Tax may be delayed in Mumbai

Implementation of Local Body Tax may be delayed in Mumbai.

MUMBAI: The newly introduced Local Body Tax, which is being opposed by the traders across the state, would not be implemented soon, a senior Maharashtra minister said.

"The new levy will be imposed on traders in the city only after due consensus among traders' associations is reached and after effecting a suitable legislation," a senior minister told PTI here.

Originally LBT was to come into effect in Mumbai from October 1.

LBT, which replaces octroi, has already been introduced in a few other cities, prompting strikes by traders.

Chief Minister Prithviraj Chavan chaired a meeting today at the state guest house Sahyadri, where city MPs Gurudas Kamat, Priya Dutt, city Guardian Minister Naseem Khan, Union Minister Milind Deora and MRCC ChiefJanardhan Chandurkar were present.

Besides, around two hundred representatives from associations of traders and wholesalers were present.

"President of the Federation of Retail Traders Welfare Association (FRTWA) Viren Shah announced in the meeting that they were calling off their strike," the minister said.

"The traders voiced fear that after the implementation of LBT a new window of corruption will open. They said they do not want to evade tax but are against the corruption in the civic body (Municipal Corporation of Greater Mumbai)," he said.

NCP chief and Union Minister Sharad Pawar is also slated to meet Chavan on the LBT issue tomorrow.
 

'LBT said to generate more revenue'

Wednesday, 22 May 2013 12:19 administrator
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The Times of India            22.05.2013

'LBT said to generate more revenue'

PUNE: With the brouhaha around the local body tax finally settled, the civic body is already calculating the additional revenue that would flow into its coffers this fiscal. Compared to octroi, LBT is a stricter tax regimen making its evasion difficult and is also applicable to more trades, said officials, reasoning why this new tax will generate more revenue than octroi did.

Officials have done their math. Mahesh Phatak, commissioner of Pune Municipal Corporation told TOI that the civic body's monthly earning from octroi payments was Rs 100 crore. "If we look at LBT payments until the May 20 deadline (without fine), the PMC earned Rs 40 crore, when only 5 % registered traders had made the payment. If all registered traders make their payment, the revenue from LBT will be much more," Phatak said, adding that even if half the traders make the payment, the collection will still be higher than octroi.

Officials said that along with the regular LBT payment, the fine and interest levied for late payment would add to the revenue. Traders, who will make their LBT payments now, will have to also pay a fine, which is in the form of 2 per cent more LBT, and an interest would also be levied for late payment.

Industries, liquor shops and oil companies had paid the tax well on time and nearly 4,500 traders made the payment since May 1. Payments have been made through demand drafts, cash, cheque and internet banking. Over 63,000 traders in the city had registered for LBT till April 30, the deadline set by the civic body.

Octroi, a key revenue source for the civic body, was replaced by LBT on April 1 this year. In 2012-13, the civic body had registered revenue of Rs 1,300 crore from octroi. Officials working in the LBT department of the PMC said awareness about LBT was increasing.

The PMC was facing financial crunch since LBT's implementation, but traders have come forward in large numbers to pay the tax in the last three working days before the deadline. The PMC received payments worth Rs 4 crore last Friday, Rs 11 crore on Saturday and Rs 25 crore on Monday, May 20. The stir was called on Tuesday night.

 
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