BMC earns ₹936 crore in two months from octroi days before scrapping it, getting GST | mumbai news | Hindustan Times
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BMC earns ₹936 crore in two months from octroi days before scrapping it, getting GST

Mumbai city news: This figure is 24.8% higher than what the civic body had earned in 2016

mumbai Updated: May 26, 2017 12:07 IST
Tanushree Venkatraman
In 2016, BMC had earned Rs750 crores from octroi.
In 2016, BMC had earned Rs750 crores from octroi.(HT File)

While the Maharashtra government has passed the goods and services tax (GST) bill, the Brihanmumbai Municipal Corporation (BMC) earned Rs936 crores from octroi levied on goods in the last two months. This figure is 24.8% higher than what the civic body had earned in 2016, between April 1 and May 19.

In 2016, BMC had earned Rs750 crores in the same duration.

Senior civic officials credited the increase to stricter vigilance at toll nakas.

However, with the Maharashtra government passing the GST bill, paving the way for uniform tax laws, BMC will have to forego octroi starting July 1. As one of the biggest sources of revenue for the BMC, octroi helps it maintain regular cash-flow.

While the BMC is going to be dependent on the state to compensate for its losses, there is also a fear of losing autonomy and self-sustenance. A senior civic official said, “It is most likely that BMC’s administrative cost, which accounts for 60% of the total budget, will be in the direct control of the State.”