Wednesday, January 15, 2014

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 :