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CM amenable to board on water tax

CHIEF MINISTER Shivraj Singh Chouhan today assured the Bhopal Municipal Corporation (BMC) that the State Government would consider the setting up of a board for taking the decision on the water tax, which has been a politically sensitive issue.

india Updated: May 19, 2006 13:29 IST

CHIEF MINISTER Shivraj Singh Chouhan today assured the Bhopal Municipal Corporation (BMC) that the State Government would consider the setting up of a board for taking the decision on the water tax, which has been a politically sensitive issue.

Mayor Sunil Sood raised the issue during meeting of mayors from various cities of the State with the Chief Minister.

At least on two occasions during past one year, the BMC Council returned the water tax hike proposal without any discussion. The BMC has been recurring an annual loss of Rs 35 crore on the water supply. However, the water tax hike could not take place despite the immediate necessity for the BMC’s financial health.

The Mayor also raised the issue of poor financial position and pleaded that the octroi compensation, being provided by the state government, has been the same since its inception. The State Government had started paying this compensation to the municipal bodies after it had decided to abolish the octroi.

Sood said that the octroi compensation should be increased now. Chouhan assured that he would talk in this matter with the Commercial Tax Department. The Mayor said that this could improve the financial positions of the municipal bodies. However, the Chief Minister ruled out the realisation of octroi by installing the barriers.

Sood also raised the issue of recovery of some funds from the Madhya Pradesh State Electricity Board. He said that the BMC is only imposing the rent on the poles installed within the municipal limits. He said that BMC is also involved in the public welfare works. The state government has already told the BMC that it could not take the property tax from the MPSEB.

First Published: May 19, 2006 13:29 IST