The Indian Express   10.08.2012

PMC proposes to increase octroi on essential commodities

Already reeling under steep price rise of commodities due to delayed
monsoon, Puneites would be further burdened if the Pune Municipal
Corporation (PMC) administration has its way over the proposal to almost
double octroi of ceratin essential commodities.

In a proposal tabled before the legal committee, PMC octroi chief
Vilas Kanade has sought approval for increasing the maximum limit on
octroi charges on various goods on the grounds that the city has grown
by leaps and bounds and there is a need to up the revenue collection to
enable PMC to carry out development works.

“The PMC octroi rules were framed in 2008 which had minimum and
maximum limits. The rates have reached the maximum limit and there is no
further scope of increasing unless the maximum limit in raised
further,” he said, justifying the need of increasing the octroi.

Going by the new proposal, octroi on food grains would be 30 paise per 10 kg as against the complete exemptions given now.

There is exemption on octroi on cereals but given the new
proposal it will have 70 paise octroi while for sugar octroi will be Rs
2. The octroi on tea will become Rs 6 instead of being fully exempted.
The exemption in octroi on basic food materials was due to decision
taken by elected representatives in the past in back drop of rising
prices of goods. Octroi on vegetable oils was Rs 2.50 per 10 kg and
after the new proposal it would be Rs 6.

The PMC had a maximum limit of Rs 3 octroi for LPG cylinder but an
exemption was given due to price hike by companies but now the civic
administration wants to raise it to Rs 6 per cylinder. Similarly,
kerosene and medical drugs were charged Re 1 which now have been
proposed to Rs 4. Octroi on petrol and diesel was the minimum at Rs 2
but that is slated to go up to Rs 4.

The civic administration has recommended that the octroi on
software and hardware for computers which was Rs 4 be doubled to Rs 8.

Imported goods would have to pay Rs 8 octroi as against the
existing Rs 4. Cigarette and tobacco products that were charged Rs 8 as
octroi would now be charged Rs 16. Octroi on gold jewellery has been
retained to the minimum of 35 paise and Rs 3 per 10 gram.