It looks like the Pune Municipal Corporation (PMC) has finally hit the jackpot with its Local Body Tax (LBT). Collections over the last nine months have almost touched the Rs.1,000-crore mark, overtaking the Rs 960 crore in octroi collections in 2012-13. This, despite the fact that PMC has identified 45,000 traders who still haven’t paid LBT at all. LBT collections drastically increased over the three months, following raids conducted on traders. In December 2013-14, the revenue was Rs 999.23 crore.
During the raids, civic officials found that traders have not paid LBT on items worth Rs.37 crore. PMC collected Rs 6.26 crore from 108 raids against these items. Following the raids, 2,250 traders registered for LBT, of which, 1,500 paid up immediately. The number of registered traders is 72,200 till date.
PMC introduced LBT from April 2013 as a replacement for Octroi. Traders initially protested and called a strike from May 1 to 5, 2013, leaving the administration unsure about revenue.
From April to September, LBT collections was low as compared to Octroi the year before. However, from October to November, PMC collected Rs 155 crore and Rs 114 crore from LBT respectively whereas Octroi collections for the same months in the previous year was Rs 119 crore and Rs 100 crore. In December, collections rose to Rs 126.83 crore. The January-2014-15 collection will reflect in next month’s revenue.
It was the month of April last year, when Pune Municipal Corporation abolished octroi and introduced the Local Body Tax (LBT) but Pune has not gained much revenue from this new tax.
Based on the experience of higher octroi collection, the civic administration has set a target of collecting Rs 1,657 crore LBT but with PMC struggling to meet the target, the PMC commissioner in his draft budget for next year has reduced the target to Rs 1,200 crore.
Last year, when municipal commissioner presented a financial budget, there was no notification on introducing LBT.
Vilas Kanade, head of PMC’s LBT cell said, “ Last year while octroi was Rs 960 crore till January, we have managed to collect Rs 996 crore LBT till date. Though the collection of LBT is on higher side compare to octroi, the target is still far.”
During the raids, civic officials found that traders have not paid LBT on items worth Rs.37 crore. PMC collected Rs 6.26 crore from 108 raids against these items. Following the raids, 2,250 traders registered for LBT, of which, 1,500 paid up immediately. The number of registered traders is 72,200 till date.
PMC introduced LBT from April 2013 as a replacement for Octroi. Traders initially protested and called a strike from May 1 to 5, 2013, leaving the administration unsure about revenue.
From April to September, LBT collections was low as compared to Octroi the year before. However, from October to November, PMC collected Rs 155 crore and Rs 114 crore from LBT respectively whereas Octroi collections for the same months in the previous year was Rs 119 crore and Rs 100 crore. In December, collections rose to Rs 126.83 crore. The January-2014-15 collection will reflect in next month’s revenue.
It was the month of April last year, when Pune Municipal Corporation abolished octroi and introduced the Local Body Tax (LBT) but Pune has not gained much revenue from this new tax.
Based on the experience of higher octroi collection, the civic administration has set a target of collecting Rs 1,657 crore LBT but with PMC struggling to meet the target, the PMC commissioner in his draft budget for next year has reduced the target to Rs 1,200 crore.
Last year, when municipal commissioner presented a financial budget, there was no notification on introducing LBT.
Vilas Kanade, head of PMC’s LBT cell said, “ Last year while octroi was Rs 960 crore till January, we have managed to collect Rs 996 crore LBT till date. Though the collection of LBT is on higher side compare to octroi, the target is still far.”
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