Petro products: BMC asks State Govt to reconsider cess | india | Hindustan Times
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Petro products: BMC asks State Govt to reconsider cess

BHOPAL MUNICIPAL Corporation (BMC) administration has urged State Government to reconsider its proposal of one per cent cess on petrol and diesel being sold within City limits.

india Updated: Jun 09, 2006 01:21 IST

BHOPAL MUNICIPAL Corporation (BMC) administration has urged State Government to reconsider its proposal of one per cent cess on petrol and diesel being sold within City limits.

BMC authorities propose this fund be used for improving the State Capital’s roads. The proposal in this regard was approved unanimously in BMC council about a year ago on June 16, 2005. It was then forwarded to the State Government, which has kept it pending so far. BMC authorities have now once again urged the State Government to reconsider this proposal.

If approved by the State Government, this proposal will bring Rs five crore to the BMC, which has been facing a financial crunch like all other urban bodies of the State.

BMC officials said 80 per cent of this fund, if received, will be spent on maintenance of City roads. BMC officials believe the State Government will provide one per cent share from taxes already imposed on petroleum products. However, it is yet to be decided how it will be realised from oil companies.

According to the proposal if the proposed load was forwarded to citizens, it will result in a hike of 50 paise per litre on petrol. There is no mention in the proposal how this will be realised.

According to information over 50 lakh litres of diesel is consumed through 70 petrol pumps situated in the BMC’s limit. Apart from this 63-64 lakh litre of petrol is consumed in the City. According to Section 132 of the Municipal Corporation Act, Municipal Corporation has rights to impose such taxes within its limits. At present, BMC realises Rs 5,000 per year as licence fee from petrol pumps.

State Government sources, however, said there was a remote possibility of approval to this proposal. Sources said State Government has already realised large amount as taxes through petroleum products.