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GST Bill: BJP minister Sudhir Mungantiwar clears Uddhav’s doubts over octroi compensation

The Maharashtra government has called for a three-day session from May 20 to clear the goods and services tax bill

mumbai Updated: May 10, 2017 10:20 IST
Faisal Malik
Faisal Malik
Hindustan Times
GST Bill,goods and services tax,Shiv Sena
Sudhir Mungantiwar will meet Sena chief Uddhav Thackeray at his Bandra residence, Matoshree, today.(File)

As the Bharatiya Janata Party (BJP) government gets ready to present the goods and services tax (GST) ratification bill before the state legislature, state finance minister Sudhir Mungantiwar cleared doubts of its ally – Shiv Sena – over compensation for losses the Brihanmumbai Municipal Corporation (BMC) will suffer once GST replaces octroi.

The state has called for a three-day session from May 20 to clear GST bill.

Mungantiwar met Sena chief Uddhav Thackeray at his Bandra residence, Matoshree, today.

“The finance minister cleared doubts or misconceptions. He also elaborated on the provisions being incorporated in the bill to compensate the BMC for its losses,” sources said.

Read more: GST resolution tabled in Maharashtra Legislature

The finance minister said they had a positive discussion over the issue. “I explained to him the decision taken by the state over payment of compensation against octroi losses. He wants us to share a copy of the draft bill, which we will give tomorrow,” Mungantiwar told HT.

He said Thackeray was concerned about the provisions in the bill and wanted a permanent solution to the octroi losses.

The Shiv Sena, which also governs the Mumbai civic body, has been stressing on maintaining BMC’s autonomy by transferring the compensation amount for octroi losses through an escrow or separate account.

The BMC, one of Asia’s richest civic bodies, has asked for an annual rise of 8% in the compensation amount for the first five years.

The issues have been taken care of in the ratification bill. Fearing that the Sena could oppose the bill on the floor of the house, senior BJP leaders want to take Uddhav into confidence, sources added.

On April 26, Sena leaders had led a delegation to chief minister Devendra Fadnavis with a charter of demands, including octroi compensation.

Read more: GST rollout: Compensation for Octroi losses to go up by 8% every year

First Published: May 08, 2017 12:58 IST