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Mangal Prabhat Lodha wants octroi to be done away with
Lodha wants octroi to be done away with
Read it on: DNA India

When the Maharashtra government introduced Value Added Tax (VAT) in 2005, it promised the business community to withdraw levy of octroi, lest it resulted in double taxation.

Four years later, the government is yet to take steps to abolish Octroi, said Mangal Prabhat Lodha, builder and BJP legislator. The government collects over Rs5,500 crore from 23 municipalities in the state with the BMC alone contributing Rs2,700 crore

Demanding that the state abolish octroi, Lodha said that on one hand, the government talks about promoting industry and providing jobs, on the other hand, it imposes a Jazia-like octroi tax which is forcing the trade to move out of the state. All states have abolished Octroi barring Mumbai

"All the octroi check points have become centres of corruption. If the octroi amount is Rs10,000, the men at the check point are paid Rs3,000 and they charge only Rs2,000 as octroi. The corruption is causing a loss of Rs5,000 to the government," said Lodha. "Close down the octroi check points and your collection will go up," he added.

"The government as an alternative can introduce an account-based octroi system. To compensate the loss of revenue to the BMC exchequer, the government can levy a cess on VAT and that cess amount can be paid directly to the civic body. This will benefit the industrialists and traders and the credibility of the government will also be intact," Mangal Prabhat Lodha added

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