The preparations by the NMC to introduce the LBT have gathered momentum
following Bombay high court’s order of March 26 to implement it within
eight weeks. The deadline ends on May 20 and the LBT is expected come
into effect from May 21.

Speaking to TOI, a senior NMC official
said, “We have already started preparations for the introduction of the
LBT. Accordingly, octroi will be replaced. We will soon set up a
special cell for the LBT. The employees of the octroi department will be
shifted to the new LBT cell. There are 400 employees in the octroi
department, including 100 employees on contract basis who have been
outsourced from private firms. These employees are to be shifted as per
the requirement.”

“There are around 20,000 businesses (trade
and industry) within the NMC limits. The LBT is to be introduced in the
city as per the guidelines of the state government. Accordingly,
businesses having turnover of less than Rs 1 lakh have been exempted
from paying the LBT. Traders having turnover of up to Rs 2 lakh will
have to pay LBT of Rs 4,000. Similarly, the bracket has been fixed at Rs
6,000 for turnover up to Rs 3 lakh. The LBT will increase by Rs 2,000
for every additional Rs 1 lakh.”

In June 2012, the state
government had issued a notification to introduce LBT in Nashik with
effect from July 1, 2013. Maharashtra Navnirman Sena corporator, Gulzar
Kokani, and Shiv Sena’s Sudhakar Badgujar, leader of the opposition in
the house, had then challenging the decision of the state government to
introduce the LBT in Nashik. On June 29, the high court had stayed the
decision of the state government to introduce LBT in the city.

However, on March 26, the Bombay high court rejected the plea by Kokani
and Badgular and directed the civic body to implement the LBT within
eight weeks.