Revenue through local body tax decreases by 13.5%
Due to recession in industrial and real estate sectors and decline in the LBT rates of some of the commodities the revenue of the Nashik Municipal Corporation (NMC) through the local body tax (LBT) has declined by 13.46% to Rs 601.88 crore in the current fiscal year as compared to the revenue collected during the previous fiscal.
The new tax system, LBT, was introduced after the directives from the state government from May 22 last year in the limits of the NMC, thereby replacing octroi, the major source of income of the civic body through which it earned close to 62% of the total revenue. It has failed to fetch adequate revenue even though the LBT has now become the major source of income of the NMC.
Against last year’s collection of Rs 695.51 crore through octroi, the revenue through LBT has declined by 13.46% to Rs 601.88 crore in 2013-14. Of the total revenue collected, Rs 112 crore was through octroi (collected during the period from April 1 to May 21, 2013).
The decline is largely due to the recession in the industrial and the real estate sector, according to sources. Even as the real estate sector is facing recession, to some extent the industrial growth has been affected due to recession. Throughout the last year there were hardly any new real estate projects launched in the city. The revenue of Rs 340 crore during financial year 2012-13 has declined by Rs 54 crore to Rs 286 crore in the current fiscal through LBT from industries. The octroi rates, which were about 4% for cement and electric items, have been reduced to 3% in LBT. Previously, for export oriented units (EOU) octroi was 3%, which has been absolutely exempted in the LBT. Somehow revenue collections are also affected by this.
When contacted Haribhau Phadol, the deputy municipal commissioner (LBT) of the NMC said, “The major contributor in the revenue of the NMC is the industrial sector. But the major reason for decline in revenue in this sector is recession. Furthermore, the LBT rates were also reduced as compared to octroi rates of some commodities. This has affected the revenue to some extent but during the next financial year, 2014-15 we are hoping to collect more revenue.”
Source: India Times
Cement, Current fiscal year, deputy municipal commissioner, Electric items, Export oriented units, Haribhau Phadol, LBT, Nashik, NMC, Octroi rates, Real estate projects, Revenue
