Kalyan Dombivli set to move form octroi to LBT
With the Kalyan Dombivli Municipal Corporation (KDMC) all set to abolish the octroi and implement the local body tax (LBT) from July 1, the municipal commissioner Ramnath Sonawane on Thursday made a detailed presentation before the corporators.
"In his presentation, the civic chief explained how this tax will be beneficial for the businessmen as well as help KDMC in earning huge revenue. Putting to rest the corporators' fears that the new tax system will result in reduction of revenue for the civic body, Sonawane said that the civic administration will collect an escort duty at octroi posts which will help KDMC in earning revenue of Rs140-160 crore per year. Similarly, the civic body will also earn Rs40 crore by imposing additional one percent charge on the stamp duty," KDMC spokesperson Prasad Thakur said.
Explaining how the new tax system will be beneficial for businessmen, the municipal commissioner said they will not have to pay LBT only if they purchase the material from outside KDMC limits. For this, the civic body has divided the revenue earnings into six types. In the first type, the food items, drinks, medicines, cosmetics will be included while in the second type, cotton, silk, wool and leather products will be included. The third type will have chemicals, mineral oil and fuel while the fourth type will include metals and its allied products. Machinery, vehicles will form the fifth type and the sixth type will include construction material. The tax structure will be decided based on the category in which the industry or the business falls.
The businessmen will have to register themselves with the KDMC by filing an application form which is available in the civic headquarters and obtaining a LBT licence. After completing the formalities, the concerned trader will be given a number as proof that he has paid the tax and the traders will have to mention the number on the bills. The tax can be paid in eight to 10 banks which are yet to be finalised by the civic body.
"Those traders who have already registered themselves under the value added tax (VAT) with the civic body, will not have to register for the LBT," Thakur said and added that till date 350 businessmen from Dombivli and 150 traders from Kalyan have registered themselves with the KDMC.
When contacted, president of Dombivli Traders Association, Anil Wakadkar said that they have agreed to the uniform tax system, provided, "It (the civic body) charges us as per the prescribed norms which were agreed upon during the meeting between KDMC officials and our association." Echoing similar views, president of Kalyan Traders Association, Vijay Pandit demanded the KDMC finalise the rate at which it will charge LBT as soon as possible.
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