Maharashtra govt firm on LBT in state, says Chavan

MUMBAI: Despite stiff resistance from opposition parties and traders, Maharashtra government today ruled out the possibility of a roll back of local body tax (LBT) which has been introduced in stages in 25 civic bodies excluding Mumbai from June 1.

Announcing this in the state Assembly, Chief Minister Prithviraj Chavan said that in Mumbai, LBT will be imposed only after amendments are made in the concerned law. He had recently announced that LBT introduction in Mumbai won't be possible from October 1, as scheduled.

LBT replaces octroi duty. "The government has appointed a committee headed by the chief secretary to incorporate suggestions, especially from traders to make LBT implementation hassle-free," Chavan said in reply to a calling attention notice by Shiv Sena legislator Rajan Vichare and others.

LBT is account-based and will provide relief to traders from the payment of octroi at check posts, he said, adding LBT will promote transparency in financial transactions.

On the implementation of GST in the country, Chavan said, "we are for GST. However, it is unfortunate that opposition parties, notably chief ministers of BJP-ruled states, are opposing the GST."

Referring to the anti-LBT protests in Mumbai in April, Chavan said they were politically-motivated and common people were held to ransom.

BJP legislator Devendra Fadnavis said the civic bodies in the state, where LBT was implemented, were incurring losses. In Nagpur alone, the loss was to the tune of Rs 60 crore.