NMC to propose MET to replace LBT in crucial meeting today

NMC to propose MET to replace LBT in crucial meeting today

IT may be mentioned that Octroi constituted an average 46 per cent of total revenue of Nagpur Municipal Corporation (NMC) in last four years. Since enforcement of LBT, this contribution has reduced to 33 per cent. The local body has bridged the gap of 13 per cent by liquidating its investment of Rs 142 crore that has adversely affected the asset side of NMC. fill October 31.2014, NMC had collected Rs 234 crore from LBT.

The total expenditure incurred during 2013-2014 was Rs 727 crore against which NMC collected recurring revenue of Rs 693 crore. The local body has failed CAPUX account funding. Previously. Octroi collections enabled NMC in CAPLX funding.

The local body already feels the heat of reducing scheduled rates on motor spirits. NMC received Rs 65 crore from Octroi while it generated only Rs 45.55 crore from LBT. The committee also recommended Ievying2 per cent surcharge on Stamp Duty. Presently. LBT on Stamp liuty is 1 per cent and NIT" is collecting 0.5 per cent on Stamp Duty. The proposed one per cent extra on Slampd Duly will increase burden on common man. The policy regarding local body surcharge on VAT is not clear. Municipal Profession Tax is being collected by the State Government and if the same is collected by NMC. it would gel estimated revenue of Rs 5 crore.

During its election campaign, Bharatiya Janata Party (BJP) had promised to scrap LBT and Octroi from municipal bodies if it was elected to power.

Barring Mumbai. all Municipal Corporations in Maharashtra arc levying LBT on traders and business persons. Afler taking charge as Chief Minister of Maharashtra, Devendra Fadnavis assured people to scrap LBT very soon. Against this backdrop, the meeting on Thursday in Mumbai has assumed special significance.

Posted in: News 2014