Mumbai: BMC hopeful of GST compensation extension

Updated: Dec 09, 2019, 08:11 IST | Chetna Sadadekar | Mumbai

Officials say civic body needs the compensation beyond 2022 for its big-ticket infra projects

Chief Minister Uddhav Thackeray chairs a meeting with BMC top brass
Chief Minister Uddhav Thackeray chairs a meeting with BMC top brass

The meeting with Chief Minister Uddhav Thackeray on Thursday has given the civic body hope that the compensation for the revenue shortfall under goods and services tax (GST) will continue even after 2022 -- when the five-year period of transition to GST expires.

The Brihanmumbai Municipal Corporation (BMC) said the Centre's compensation to the state government needs to continue beyond 2022 in light of the long term big-ticket infrastructure projects BMC has taken up, and also because the highest revenue source — Octroi has been abolished.

To ensure there is plenty of funds available with country's richest civic corporation, Municipal Commissioner Praveen Pardeshi had last month directed all administrative heads to undertake development work under Corporate Social Responsibility (CSR) as much as possible, or with the help of citizens' groups and public private partnerships.

According to BMC sources who attended the meeting, the state government said the Centre may consider considering to us that extending the five-year transition period. One of the BMC officials requesting anonymity said, "The state government officials at the meeting told us that there is no special clause that stops the state from paying us beyond 2022. Thus, we are hopeful the extension of compensation tenure is very much possible."

Mayor Kishori Pednekar is also hopeful to get an extension. "We told the CM that after the revenue source of Octroi is lost, the BMC will need the funds to keep coming for future projects. The chief minister has heard us, and we are hopeful a decision will be taken for the betterment of the citizens."

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