Before GST roll-out, Mumbai civic body crosses target for octroi revenue
Mumbai city news: Senior civic officials from the assessment and collection department said that they were expecting the revenues to reach up to Rs1,800 crores, Rs 300 crores more than its estimated revenue .mumbai Updated: Jun 24, 2017 10:35 IST
The Brihanmumbai Municipal Corporation (BMC) has earned Rs1,528 crore as octroi revenue between April and June 22, surpassing its targets for three months.
Senior civic officials from the assessment and collection department said that they were expecting the revenues to reach up to Rs1,800 crores, Rs 300 crores more than its estimated revenue .
This is just a few days before the Goods and Services Tax (GST) comes to effect, making five octroi nakas in the city useless.
BMC, in its 2017-18 budget targets, estimated Rs1,500 crores in the first three months of the financial year, followed by Rs5,883.75 crore from the Central and state governments as compensation for the loss incurred from the foregoing octroi.
GST will make way for uniform tax in the country. Octroi and property tax are the two biggest sources of revenue for the BMC.
Annually, octroi fills the BMC coffers with close to Rs 7,000 crores. Senior civic officials credited the increase in estimated revenue to increased surveillance across octroi nakas. “The revenue will rise in the next week because crude oil bills are paid mostly in the end of the month,” a civic official said.
In three months, BMC earned Rs 380 crores through the levy on crude oil.
Meanwhile, municipal commissioner Ajoy Mehta has asked deputy municipal commissioners of seven zones in the city to submit their ideas on how the octroi nakas can be used. There are five such nakas in the city - three in Mulund (T ward), two in Dahisar (R North ward) and one in Mankhurd (M/East ward), which serve as entry points to many goods vehicles in a day.
BMC wants to put the available space to good use, senior civic officials said. While BMC has plans to turn these nakas into Central Business Districts (CBD) as marked in the Development Plan (DP) 2034, it is yet to make any progress. Mumbai police, meanwhile, is also planning to step up security at the nakas after there were doubts over the entry of unwanted goods in the city post octroi ban.