Activist bats for one year extension for LBT department

His statement comes after the Maharashtra government on Tuesday issued a circular to all municipal corporations to scrap the LBT department after the implementation of Goods and Services Tax (GST)

Civic activist Vivek Velankar has appealed to the Pune municipal commissioner to extend the Pune Municipal Corporation (PMC) local body tax (LBT) department by one year to collect dues of around ₹200crore from traders.

Introduced in 2013 to replace octroi, LBT was abolished in 2017 after GST was introduced. (HT PHOTO)

His statement comes after the Maharashtra government on Tuesday issued a circular to all municipal corporations to scrap the LBT department after the implementation of Goods and Services Tax (GST).

Introduced in 2013 to replace octroi, LBT was abolished in 2017 after GST was introduced.

Velankar said, “PMC LBT department has 140 employees who draw salary from the office but work in other departments. During the LBT period between 2013 and 2017, over 1.09 lakh traders did not file annual returns and are liable to pay ₹5,000 fine. By running the office for one more year, the civic administration can recover ₹200crore pending dues.”

Municipal commissioner Rajendra Bhosale said, “With the GST in place since the last few years, we have to follow the state order to close LBT department.”