Octroi collections exceeded estimate by Rs 72 cr………
MUMBAI: Sugar prices have touched a record high of Rs 42 per kg, and starting Monday, the BMC has announced a 2% octroi waiver on sugar.
The civic standing committee that cleared the waiver will now request the state government to provide further relief, officials said. “We provided a waiver on three essential items last year. Sugar has now been taken off the (octroi) list and more could follow if the state accedes to our request. We will discuss in our next meeting some other items that can have the octroi waived off,’’ committee chairman Ravindra Waikar said.
The decision comes at a time when the corporation has mopped up Rs 72 crore more in octroi collections than was estimated. The collection at the end of the 2009-10 fiscal stood at Rs 4,522 crore; the estimate was Rs 4,450 crore. “If the state agrees, we could think of providing other temporary waivers,’’ municipal commissioner Swadheen Kshatriya said.
Essential commodities are brought into Mumbai by road through five check nakas; two at Mulund and one each at Airoli, Dahisar and Vashi. Octroi is also applicable on goods transported by air, sea and rail.
“We welcome the temporary move but, at a time when the entire state is reeling under inflation, it does not make sense to levy a tax on other essentials. This is only going to encourage the practice of hoarding and evasion and put pressure on honest traders,’’ said Sugar Merchants’ Association chairman, Mohan Gurnani.
However, others feel that complete octroi abolition will not serve the purpose. “Instead of completely lifting the octroi on essential commodities, the system can be balanced by reducing the percentage on commodities—not necessarily essential—that are taxed at a high rate. For instance, liquor, plywood, laminate have an octroi of 7%, which can easily be brought down,’’ said Suhas Nandodkar, president, the Mumbai Panvel Highway Check Naka Association.
Mumbai Mudi Bazar Traders’ Association chairman Ambrish Barot said the state should also abolish octroi on food items. “The waiver on sugar is just a face-saving exercise for the state. Instead of short-term measures, the government should concentrate on drawing up a comprehensive policy on price control,’’ he said.
The Current Situation
* Bajra, jowar, wheat, rice, and pulses: No octroi
* Jaggery, tamarind, sugar,tea, coffee, edible oil, domestic gas, vanaspati: 1-3%
* Food items (sesame, cumin seeds, mustard, etc): 1-2%
* Dry fruits: 4%
* Bicycle, newsprint and chemicals: 3%
* Clothes, textiles: 3%
* Plastics, machinery: 5.5%
* Luxury goods, wooden furniture: 7%
* Medicines: Variable octroi
* Jaggery, tamarind, sugar,tea, coffee, edible oil, domestic gas, vanaspati: 1-3%
* Food items (sesame, cumin seeds, mustard, etc): 1-2%
* Dry fruits: 4%
* Bicycle, newsprint and chemicals: 3%
* Clothes, textiles: 3%
* Plastics, machinery: 5.5%
* Luxury goods, wooden furniture: 7%
* Medicines: Variable octroi