LBT strike: Octroi collection down by Rs 22 cr in May

May 11, 2013, 03:39 IST | Sujit Mahamulkar

The ongoing retail and wholesale traders' indefinite strike against the state government's decision to implement Local Body Tax (LBT) is badly affecting the Octroi revenue of the Brihanmumbai Municipal Corporation (BMC)

All retail outlets of clothes, metals, food grains, fruits, vegetables, electronics and hardware are shut and almost all manufacturing activities in the city are down since the past few days.

Mulund Octroi Naka
No earnings: Mulund Octroi Naka stands empty as nakas all over the state shut down to protest Local Body Tax (LBT) yesterday. Pic/Sameer Markande

The average revenue that the BMC earns from Octroi on a daily basis for allowing outside goods into the city is Rs 12 crore. However, in the last eight days, the BMC has lost Rs 22 crore.

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The Octroi department’s daily revenue record from May 1 to May 8 (a copy of which is with MiD DAY) shows fluctuating revenue. The income for these 8 days totalled at Rs 74.33 crore, instead of the expected Rs 96 crore.

On the other hand, the Octroi department had collected Rs 352 crore as revenue in the month of April.

On May 5, the BMC received only Rs 4.72 crore as revenue from all nakas, including Mankhurd Octroi Naka, Mulund (LBS Road), Mulund (Eastern Express Highway), Airoli and Dahisar Naka.

According to an official from the Octroi department, the LBT issue would continue to hamper the revenue collection as traders have stopped taking orders.

“We are getting Octroi on goods entering the city. Those orders must have been placed earlier. Now, the traders have stopped giving orders,” said an official.

VK Agharkar, head of the assessment and collection department, refused to comment on the issue.

Daily octroi collection
Day         Octroi collection*
May 1      Rs 6.01 crore
May 2      Rs 10.87 crore
May 3      Rs 12.12 crore
May 4      Rs 11.39 crore
May 5      Rs 4.72 crore
May 6      Rs 9.32 crore
May 7      Rs 9.50 crore
May 8      Rs 10.40 crore
* Rs 12 crore was the average daily collection in April 

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