LBT Collection beats octroi in Pune

After several hiccups in its initial months, it looks like the Local Body Tax (LBT) levied by the Pune Municipal Corporation (PMC) has come into its own. Revenue generated by the LBT till December has overtaken the amount the civic body collected from octroi during the same time last year.

PMC has collected Rs 862 crore from traders via LBT, while the octroi collection last year was Rs 864 crore. However, the octroi revenue included collections from the Pune and Khadki Cantonment areas, while LBT excludes these.

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Traders call for bandh on February 21 against LBT

All traders' associations in the state on Tuesday decided to observe bandh on February 21 in protest against the state government decision to implement the local body tax (LBT) in the limits of 26 municipal corporations. The traders also decided to take out a rally at Azad Maidan in Mumbai on the same day at 2pm. The decision to this effect was taken at a meeting of all traders' associations from the state at Nashik Industries & Manufacturers Association (NIMA) House in the city. The meeting was organised by the Federation of Associations of Maharashtra (FAM) and Nashik City Traders' Federation (NCTF).

He added, "The Lok Sabha and state assembly elections will be held in the next few months. The total headcount of traders and their families is about 50 lakh across the state and five people are associated with each trader. Hence, we have decided vote for the political party during the forthcoming elections that will assure us in writing about abolishing the LBT." NCTF executive president Prafulla Sancheti said, "The state government imposed Value Added Tax (VAT), but did not abolish octroi. Now they abolished octroi, but introduced the LBT. We neither want octroi nor LBT."

The meeting was attended by office-bearers of traders' associations from

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Writ Pettion for LBT rejected by Bombay HC

A Writ Petition was filled in Bombay High Court

The decision taken by High Court is reproduced below

"
The challenge in this Petition under Article 226 of the Constitution of India is to the provisions of certain Rules incorporated in the Bombay Provincial Municipal Corporations (Local Body Tax) Rules, 2010. In the entire Petition, admittedly there is no averment that any recovery is sought to be made against the Petitioners relying upon the said Rules.

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Sale of cars, bikes soar but LBT collection dips

If local body tax (LBT) collections are any indicator, less than hundred vehicles have been sold so far this financial year. Or that is the number of vehicles that dealers have paid LBT on to the civic body this year.

Consider this: Over 32,000 vehicles have been registered with RTO so far in Kolhapur this fiscal, but tax has been paid on only 95. Dealers are supposed to pay 1.5% of the total vehicle cost as LBT for vehicles that cost over one lakh. So, the number of vehicles that attract LBT comes to around 19,000, of which about 5,000 are estimated to be high-end bikes.

Reeling from poor collections, the standing committee has now sought from the RTO the number of vehicles sold over the last 10 months.

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FAM and civic bodies to meet on January 28 to discuss abolition of LBT

Members of the Federation of Associations of Maharashtra (FAM) would meet officials of municipal corporations in Nashik on January 28, 2014, to discuss the abolition of local body tax (LBT), which has already been imposed in 25 (of the 26) civic bodies in the state (the exception being Mumbai).

Mohan Gurnani, president, FAM, said, “LBT is not only affecting the traders, but it would put an extra burden on consumers as well.” To protest against the imposition of the levy, traders in Mumbai and Nagpur downed their shutters for 28 days, while their counterparts shut shop for twelve. However, the state government did not yield.

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Civic body proposes to scale down LBT target for financial year 2013-2014

The target of local body tax (LBT) for the financial year 2013-2014 for Navi Mumbai Municipal Corporation is more than the previous year.
The Navi Mumbai Municipal Corporation’s (NMMC) Cess department has forwarded the proposal to the state government to reduce tax to 1.5%, but it hasn’t been approved yet.

When asked, an LBT officer, requesting anonymity said, “We have LBT for 2%, 3%, and 7% as of now, we do not know when it will get converted to 1.5%.” Agricultural products have been given exemption of 0.2% and other export materials, too, have received exemption.

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56% traders not paying LBT

Around 56% of the traders and businessmen registered with the Nashik Municipal Corporation (NMC) for the local body tax (LBT) have still not paid the tax eight months after the new system came into effect and the current financial year is coming to an end, the officials have said.

The high percentage of tax evaders has led to decline in the revenue of municipal corporation through LBT. The NMC has issued notices to close to 1,500 traders for not paying the tax, but has not taken action against them so far.

Earlier, octroi was the main source of income as the NMC would earn 62% of the total revenue through it. But after the directive of the state government, the new tax system came into effect in the limits of the NMC on May 22 last year. Around 25,000 traders and industrialists have been registered with the LBT.

Speaking to TOI, an NMC official said, "Around 25,000 traders have been registered with the LBT, but only 11,000 (44%) of them are paying it. This has led to decline in the revenue of NMC through LBT as compared to that of octroi. We have served notices to around 1,500 traders for not paying the LBT. We are mulling confiscation of movable and immovable properties of tax evaders soon."

According to sources, the revenue of the NMC through LBT has declined by 6% to Rs 442.72 crore in the first nine months by December 31 in the current fiscal, as against Rs 470 crore during the corresponding period last year (2012-13). In all, Rs 301.56 crore was generated through LBT, Rs 11.27 crore through escort duty, Rs 23.47 crore through stamp duty and Rs 106.42 crore through octroi (collected between April 1 and May 21),

"Although there is decline in the revenue through LBT, we hope to collect Rs 650 crore by March-end. We are also expecting rise in the number of tax payers in February and March. We will definitely achieve our target if the all registered traders pay the LBT," the official added.

Source : http://articles.timesofindia.indiatimes.com/2014-01-16/nashik/46262871_1_lbt-local-body-tax-tax-evaders

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Sangli traders lock horns with SMKMC

Traders from the Sangli Miraj Kupwad areas have intensified their opposition to the local civic body's firm stand on collecting Local Body Tax (LBT).

Last week, the Sangli Miraj Kupwad Municipal Corporation's (SMKMC) had asked all traders under its jurisdiction, to pay LBT at the earliest. This decision irked the traders' community that has been raising demands with the state government against the tax. The LBT had come into effect in the jurisdiction of the Corporation in May last year, after the abolition of centuries old Octroi system.

A senior SMKMC official said "The corporation received Rs 40 crore from some traders, after they were served a notice. We do not have details of the traders, their business activities and turnover. So, a self-assessment clause was introduced in the new tax regime and traders are expected to assess their own business and pay tax."

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Mantralaya will take final call on LBT issue soon

The issue of reducing existing Local Body Tax (LBT) is one step away from getting resolved. Early this month, the Navi Mumbai Municipal Corporation (NMMC) forwarded a proposal to the state government asking the latter to reduce the tax slab for the city.

NMMC commissioner Abasaheb Jar confirmed the development, but refused to divulge details of the proposal. However, another senior NMMC official, who played a crucial role in preparing the revised tax structure, said, "NMMC has recommended reducing LBT for major goods in order to provide relief to citizens and traders. The civic body has suggested minor changes in some other categories, too. Now, the corporation will have to wait for the Mantralaya's decision."

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LBT grievances' meet at PCMC zonal offices to be held every week

The local body tax (LBT) department chief of Pimpri Chinchwad Municipal Corporation(PCMC) will meet traders and citizens at four zonal offices every week to hear their grievances.

Assistant commissioner Yashwant Mane said he would be meeting traders on Monday at the zone A office in Nigdi. Similarly, he would be visiting zone B and D offices on Wednesday and zone C office at Nehrunagar on Thursday. "I will meet the traders, industrialists and other citizens to solve their problems regarding LBT payments."

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