Revised Local Body Tax proposal to be sent to state govt
The Navi Mumbai Municipal Corporation (NMMC) will submit the draft of the revised Local Body Tax (LBT) to the state government in three weeks for its approval.
"After discussing the existing tax structure with the traders' community and other concerned parties, the civic body's tax (cess) department has prepared a revised LBT proposal which has reduced a certain slab of the LBT," said Sudhir Cheke, deputy municipal commissioner (Cess).
He added that all the points raised by the mercantile community representatives and suggestions given by guardian minister Ganesh Naik have been taken into consideration while drafting the revised proposal.
He also said that the draft will be tabled before NMMC commissioner Abasaheb Jarhad for any final changes and then forwarded to the state government for its approval. "The process will be completed in three weeks," Cheke said.
"After discussing the existing tax structure with the traders' community and other concerned parties, the civic body's tax (cess) department has prepared a revised LBT proposal which has reduced a certain slab of the LBT," said Sudhir Cheke, deputy municipal commissioner (Cess).
He added that all the points raised by the mercantile community representatives and suggestions given by guardian minister Ganesh Naik have been taken into consideration while drafting the revised proposal.
He also said that the draft will be tabled before NMMC commissioner Abasaheb Jarhad for any final changes and then forwarded to the state government for its approval. "The process will be completed in three weeks," Cheke said.
Many traders have not been paying the tax, in anticipation that LBT would be reduced. As a result, corporation managed to collect revenue of just Rs 370 crore in first seven months of 2013, way short of its target of Rs 825 crore.
When asked how long it will take for the new tax structure to be introduced, a senior NMMC official said, "Once the draft is approved by the state government, the new tax would be introduced."
In September, senior NCP leader Ganesh Naik, along with NMMC officials, had met the chief minister Prithviraj Chavan to discuss issues affecting the city, including the opposition to LBT. Chavan had given his in-principle approval for reduction in LBT, provided that it did not affect the revenue generation.
Before LBT was introduced, the civic body use to collect cess. The annual cess collection was nearly Rs 425 crore.
