Maharashtra CM assures scrapping of octroi after consensus

Mumbai, June 12 (UNI) Maharashtra Chief Minister Vilasrao Deshmukh today said his government was committed to scrap octroi and a decision on the matter will be taken after a consensus.

Speaking at a meeting of traders held at Mantralaya, Mr Deshmukh said a committee under Urban Development Principal Secretary with traders, businessmen and commissioners of important municipal corporations will be set up to find out a solution which will be acceptable to all.

The committee will submit its report to the cabinet, which will then take a decision, Mr Deshmukh informed.

The traders delegation told the Chief Minister that octroi existed nowhere in the world and in the country, except Maharashtra.

Scrapping of octroi will not result in losses to anybody, they argued.

Municipal Corporations having large industries in their jurisdiction and where 80 per cent of revenue comes from such 20 per cent traders and business establishments, will not face any problem due to scrapping of Octroi, Mr Deshmukh said.

But, he said revenues of small municipal corporations will take a beating. The Finance department is working on how the deficit in revenues could be removed. If the small municipal corporations face losses, the state government would have to otherwise compensate them, he added.

The delegation suggested that account based octroi system be adopted and revenues directly credited in the municipal corporation account.

They brought to the notice of the Chief Minister that in municipal council areas, councillors harass them for octroi. Mr Deshmukh said councillors did not have right to intervene in such issues and if this happens, the government could even consider disqualifying such councillors.

UNI