'Octroi will be done away with soon'
Having had over a dozen committees to study and recommend ways to remove octroi, chief minister Vilasrao Deshmukh said that the draconian way of collecting levy would really be abolished soon.
By TNN |
MUMBAI: Having had over a dozen committees to study and recommend ways to remove octroi, chief minister Vilasrao Deshmukh said that the draconian way of collecting levy would “really” be abolished soon. The chief minister made the promise to a delegation of industrialists led by Shrinivas Dempo, chairman, CII, western region.
The CII delegation pointed out that Maharashtra was fast losing ground to other states such as Tamil Nadu, Andhra Pradesh and Gujarat, which have made rapid strides in recent years by creating atmosphere conducive to fast industrial growth. The delegation pointed out that Gujarat, the only other state to have octroi, has already announced a date for abolishing the levy.
The CM said that the latest committee, the 13th in a decade, headed by urban development secretary TC Benjamin, has made considerable progress in finding out viable alternatives to the levy, and it would be abolished soon.
Recently, state finance minister Jayant Patil too had made a similar statement.
Many business associations have aired their objections to octroi over the years. A section of the government thinks that the state will have to share the burden of local self governments if the octroi is abolished as it’s been a major source of revenue for them.
According to government estimates, the state would have to cough up more than Rs 5,000 crore every year to compensate municipal bodies for the loss of octroi. The state government is considering various options, including higher property tax, to help municipal bodies generate more revenue.
The CII delegation pointed out that Maharashtra was fast losing ground to other states such as Tamil Nadu, Andhra Pradesh and Gujarat, which have made rapid strides in recent years by creating atmosphere conducive to fast industrial growth. The delegation pointed out that Gujarat, the only other state to have octroi, has already announced a date for abolishing the levy.
The CM said that the latest committee, the 13th in a decade, headed by urban development secretary TC Benjamin, has made considerable progress in finding out viable alternatives to the levy, and it would be abolished soon.
Recently, state finance minister Jayant Patil too had made a similar statement.
Many business associations have aired their objections to octroi over the years. A section of the government thinks that the state will have to share the burden of local self governments if the octroi is abolished as it’s been a major source of revenue for them.
According to government estimates, the state would have to cough up more than Rs 5,000 crore every year to compensate municipal bodies for the loss of octroi. The state government is considering various options, including higher property tax, to help municipal bodies generate more revenue.
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The CII delegation also raised the issue of power crisis in the state during their meeting with the chief minister. According to the chief minister it would take at least five more years before the state can enjoy uninterrupted power supply round the year. Maharashtra now has a shortage of 5,000 MW, and with the demand growing, the shortfall would go up if supply was not increased. Download
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