Guj Govt abolishes octroi in 7 municipal corporation limits

Gandhinagar, June 6 (UNI) Gujarat Government today decided to abolish octroi from seven Municipal Corporations with effect from Labh Pancham day (the fifth-day of Gujarat New Year day).

Gujarat Cabinet, chaired by Chief Minister Narendra Modi, here decided that the octroi would be abolished in seven civic corporations of Ahmedabad, Surat, Vadodara, Rajkot, Jamnagar, Bhavnagar and Junagadh.

The decision was taken by the Cabinet after deep deliberations to find new resources to replace the octroi in these seven corporations since octroi is the main revenue earner, amounting to Rs 1800 crore per annum.

Gujarat Urban Development Minister I K Jadeja and Energy Minister Saurabh Patel, in a joint statement, said the civic authorities had been asked to take necessary administrative decision to ensure that alternative income to octroi is generated.

The State Finance department had been instructed to chalk out an alternative mechanism as per discussions with representatives of theCchambers of Commerce of these seven corporations to generate alternative income.

UNI