Tuesday, December 24, 2013

NMC to seek govt's view on LBT exemption for export units

The Nashik Municipal Corporation (NMC) has decided to seek government's guidance on exempting export oriented units (EOUs) in the limits of the municipal corporation from the local body tax (LBT). The civic body sent a letter to the state government in this regard.

There are around 20 EOUs within the NMC's jurisdiction. Industrial associations such as Nashik Industries and Manufacturers' Association (NIMA) and Ambad Industries & Manufacturers' Association (AIMA) have urged the NMC to exempt EOUs from LBT.

An NMC official said, "We generate revenue of around Rs 1.5 crore through taxes from the EOUs in Nashik. As per government rules, LBT is to be levied on sale, use and counter sale of products. There is no clarity in the rules pertaining to tax exemption to EOUs. So we have decided to seek government guidance on the issue.The decision pertaining to tax exemption will be taken as per their instructions of the government."

AIMA president Suresh Mali said, "There are around twenty 100% EOUs at Ambad and Satpur industrial estates of Maharashtra Industrial Development Corporation (MIDC). The NMC should provide tax exemption to such EOUs to promote export, but it's not happening. During our meeting with municipal commissioner Sanjay Khandare, we had urged him for tax exemption to EOUs. But no decision has been taken yet."

Following the state government's directives, LBT came into effect in the limits of the NMC from May 22 this year, replacing the previous octroi . Around 23,500 traders and industrialists have been registered with the LBT.

There are around 3,500 small, medium and large industrial units in Satpur and Ambad industrial estates of the MIDC, located in the jurisdiction of the NMC. The civic body earns 60% of its total revenue through taxes from the industries.