Octroi on newly merged areas uncalled for: GCCI

Ahmedabad, Sept 30 (UNI) Gujarat Chamber of Commerce&Industry (GCCI) today voiced concerns over reports about a move to levy octroi on the extended areas of the Ahmedabad Municipal Corporation(AMC).

Reacting to reports appearing in a section of the press which stated that octroi would be levied on the newly merged areas of AMC, the chamber feels that this was not justifiable under any grounds, according to a GCCI release.

Citing the example of Naroda, Odhav and Vatva industrial areas, which are merged with the AMC, GCCI said octroi was levied in a phased manner in these areas over a period of four years. A similar process should be followed for the newly merged western parts of the city.

GCCI also cautioned that the move to add 30 new octroi posts to the existing 90 posts was also not pragmatic.

The chamber has urged the government to state clearly its stand on the issue as conflicting newspaper reports have been appearing frequently eventhough the GCCI has been assured by the government in the past, that no octroi would be levied on the newly merged areas.

Chamber authorities have said that the government had promised to abolish octroi when VAT was implemented but there has been no substantial steps taken in this direction. Octroi has been abolished in Punjab from October 1, 2006, while Maharashtra and Gujarat continue to levy it. Such a retrograde levy does not augur well for a proactive and investor friendly state like ours and it should be abolished at the earliest in the interest of all, the GCCI observed.

UNI VNB WD AW2013