Hike in Octroi on several goods

Nagpur, May 29 (UNI) The Nagpur Municipal Corporation (NMC) Budget for 2007-2008 has proposed a hike in Octroi on several goods and exemption for some others, but leaves the rates of other levies like property tax and water tax untouched.

Presenting the Rs 602 crore budget to the general body today, Standing Committee Chairman Nana Shamkule said he was proposing a hike in octroi on two-wheelers, four-wheelers, mini buses, mini luggage vans, trucks and their chassis, bulldozers, dumpers, buses, lorries, tankers, tractors and road rollers and all other automobiles.

Octroi on two-wheelers was proposed to be hiked from Rs 200 per piece at present to 1 per cent ad valorem, and that on other vehicles from 0.5 per cent at present to 1 per cent, he said.

Similarly, the levy on all kinds of dry fruit was proposed to be hiked from 1 per cent to 2 per cent, on teakwood from 0.25 per cent to 0.5 per cent, and on iron, steel, mild steel, iron sections, corrugated tin, galvanised iron wire, iron wire, cast iron and mild steel flats from 0.5 per cent to 1 per cent, Mr Shamkule said.

The levy on iron scrap, roast, billets, bloom, slab, ingot and parts of old machinery was proposed to be hiked from Rs 3 per quintal to Rs 6 per quintal, he said.

On the other hand, foodgrains, pulses, bajra, all kinds of vegetables like potato and onion, green ginger, chilly, tamarind, garlic, bread, loaf, toast, papad, loose milk powder, pasteurised butter, chicken, duck and all other kinds of birds, sheep, goat, boar, bullock, cow, buffalo and horse, besides chemical fertiliser and insecticide used for agriculture, were proposed to be totally exempted from octroi, the Standing Committee Chairman said.

The effort was to provide relief to the poor while ensuring an increase in the revenue of the civic body, Mr Shamkule told the House, adding that he was leaving the rates of the other levies like property tax and water tax untouched while initiating efforts to improve recovery.

The target for octroi collection for the current fiscal was Rs 270 crore against Rs 203.55 crore actually collected last year, he said. The target for revenue from property tax was Rs 103.85 crore and from water tax Rs 75 crore, he said.

The budget envisaged a revenue of Rs 602.29 crore along with surplus from last year of Rs 10.14 crore, and an expenditure of Rs 612.38 crore, leaving a surplus of Rs 5.37 lakh, he added.

This is the first NMC budget since the Bharatiya Janata Party (BJP)-Shiv Sena alliance came to power after the civic elections last February.

UNI