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.