GST in, octroi out: 1,300 BMC staff to lose their jobs, may be moved to other departments
Mumbai city news: From July 1, octroi will be scrapped in the city. This means, those working at Mumbai’s entry-exit points will lose their jobsmumbai Updated: Jun 15, 2017 12:22 IST
The goods and services tax (GST) will usher in a single taxation system, but it will also render almost 1,300 employees of the Brihnamumbai Municipal Corporation (BMC) jobless. Reason: Once GST is implemented, Octroi duty will be scrapped. As a result, those working in the Octroi department, including five check posts at Mumbai’s entry-exit points, will lose their job.
The BMC is now planning to accommodate these 1,300 staffers in other departments such as audit, assessment and control and general administration.
Officials from the tax assessment and collector department said it has a vacancy of about 600 posts. Even the audit department has a vacancy of about 300 posts. This may take care of around 900 employees. Senior civic officials said they will decide where to accommodate the rest of the staff in the next 15 days.
“We will either take an examination or reshuffle people on the basis of their seniority. We will take a call in the next few days,” an official said.
The BMC has around 108 departments with more than a lakh people working in the different departments and 24 wards. BMC officials also have to take a call on the usage of various Octroi collection points in the city.
Last week, the state Assembly passed the GST bill abolishing Octroi as revenue for the civic body. The BMC earns almost Rs7,000 crore from Octroi in a financial year. Between April 1 and May 19, 2017, the BMC has already earned Rs936 crore as revenue, 24% more than what it earned in 2016 in the same duration.
Taking 2016-17 as the base year, the Central and state government will compensate the civic body at an 8% interest rate. In his 2016-17 budget speech, BMC commissioner has made an estimation of Rs1,500 crore from octroi in the remaining months and Rs5,883.75 crore as compensation from the state for the rest of the year.