Tuesday, January 14, 2014

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."

In December 2013, TOI had reported that the civic body would submit the proposal to the state government by early January for its approval. According to the civic body officials, the corporation has estimated reduction in its revenue receipt target by nearly Rs 125 crore due to changes in the LBT. Prior to LBT, the civic body used to collect an annual collection of the cess of nearly Rs 425 crore, but after introduction of the LBT, the civic body had estimated a revenue collection of nearly Rs 825 crore.

The ruling DF government had introduced LBT in various cities to replace octroi or cess. LBT is a tax that is levied on the entry of good for use and consumption within the jurisdiction of local municipal body.

However miffed with government taxing policies, last year, traders protested against the LBT and demanded reduction in the existing tax structure proposed by the government.

Aware that the issue can have material impact on the 2014 general and state assembly elections, political leaders cutting across the party lines urged the ruling DF government to provide some relief to the mercantile community and citizens too. Even ruling Congress-NCP ministers too demanded reduction in tax prices. Senior NCP leader Ganesh Naik, infact took delegation of political leaders, civic officials and traders to chief minister Prithviraj Chavan in September.

During the meet, the CM suggested the NMMC officials to consider lowering the existing. Accordingly the corporation has now forwarded the proposal for the state headquarters to take a final call .

Source : http://articles.timesofindia.indiatimes.com/2014-01-15/navi-mumbai/46223233_1_lbt-issue-nmmc-tax-structure