The municipal corporation on Thursday decided to lift the waiver of octroi on sugar from July.
"We have decided to charge octroi on sugar in Mumbai from July as we have seen that it has not benefited the end user", said an officials from the Assessor & Collector department.
The Standing Committee of BMC in March had announced a waiver of octroi on sugar as directed by the chief minister.
The waiver had been granted for a period of three months.
The waiver had been given to reduce the high sugar prices. Before March there was a 2 per cent octroi levied on sugar.
Octroi department is one of the largest revenue spinner of the BMC. The collection for year 2009-2010 is Rs 4425 crore.