Civic taxes to rise after octroi

When it comes to taxes, it may be foolhardy to expect good news. Even as a parliamentary committee reviews the introduction of the goods and services tax (GST), which will replace all other indirect taxes including octroi, VAT and excise, the civic body has begun contemplating alternative sources of revenue.

When it comes to taxes, it may be foolhardy to expect good news. Even as a parliamentary committee reviews the introduction of the goods and services tax (GST), which will replace all other indirect taxes including octroi, VAT and excise, the civic body has begun contemplating alternative sources of revenue.

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Sadly, this means your current civic taxes will increase, and you will be required to pay new ones. Taking a step in that direction, the Brihanmumbai Municipal Corporation (BMC) has asked University of Mumbai's department of economics to study alternatives when taxes such as octroi - its biggest money-spinner, expected to fetch Rs. 6,900 crore this fiscal - are withdrawn.

"We plan to revise water and sewerage tariffs every year by up to 8% to ensure there is an addition to our income every year," said a senior civic official.

Another burden the civic body may impose is a tax on waste collection.

"The Centre's Jawaharlal Nehru National Urban Renewal Mission scheme makes it mandatory for us to tax every facility we offer. Waste collection is a critical service, hence the Centre has been insisting that we start levying a tax on it as well," the official said.

The BMC is also considering afresh a long-standing proposal to tax slums.

Additional municipal commissioner Rajiv Jalota confirmed that the university has been approached for the study, but refused to divulge details.