Maharashtra to do away with octroi completely by year-end

MUMBAI: Maharashtra Chief Minister PrithvirajChavan today said octroi will be abolished in the state by December-end.

"We are gradually introducing local body tax ( LBT) in all the corporations. We expect to do away with octroi by the end of the year," Chavan said at Maharashtra Industry Summit here.

Maharashtra, the only state to levy local octroi, has now introduced accounts-based LBT to replace it.

LBT has been introduced in the municipal areas of Amravati, Akola, Ahmednagar, Ulhasnagar, Kalyan-Dombivli, Chandrapur, Parbhani, Latur and Nashik among others.

"We are gradually introducing LBT across the state, beginning from smaller corporations. Now, we will be introducing it in Pune, Nagpur, Pimpri-Chinchwad and even in Mumbai which charges 4 per cent levy as octroi," Chavan said.

The Brihanmumbai Municipal Corporation has decided to abolish octroi from October 1 this year.

While octroi is recovered immediately on the entry of goods into the city, the local body tax is payable within 40 days of bringing goods in.