Pros and cons of local body tax
The Pimpri Chinchwad Municipal Corporation (PCMC) is ready to start the local body tax (LBT) though it has not yet got green signal from the state government.They are preparing a report about the merits and demerits of the LBT and a game plan to implement the tax. The report will be ready and submitted by the end of the month.
Prakash Kadam, additional municipal commissioner, said that the civic body is waiting to receive the letter from state government about abolition of octroi and start collecting local body tax from the coming financial year. The civic bodies of Mira-Bhayander, Sangli, Kalyan Dombivli, Aurangabad and others have implemented local body tax.
Some of them had to face problems for which the municipal corporation has formed a two member group which will visit the civic bodies where LBT has been already collected. The civic official will study the system and make the required changes in their administrative process.
The municipal corporation will transfer the surplus employees to other departments and also restructure the octroi department. Major municipal corporations like Pune, Nashik, Mumbai and Pimpri- Chinchwad still charge octroi.
The state government have to either allow them to give a share in the sales tax, entertainment tax and other taxes or collect LBT from their municipal limits along with some monetary compensation as the civic bodies going to lose a major revenue.
Tags:
local body tax, local body tax by PCMC, Municipal corporations in India, Pimpri-Chinchwad, Pimpri-Chinchwad Municipal Corporation, Pune
The state government should abolish Octroi as it was promised that if VAT is implemented than the rates of all the items will be same all over India, then why this LBT as this is sheer cheating.
The Govt. should understand that there is no Octroi or LBT in any other state then how is the other state govt. working. See for example Gujrat and implement the same.