Traders reject Govt proposal of new tax in lieu of LBT

, Jun 28: Traders in

have rejected the State Government's proposal to substitute the controversial LBT (local body

) with a new levy.

In a joint release issued late last night, President of Federation of Associations of Maharashtra (FAM) Mohan Gurnani and Vice-President of Thane Small Scale Industry Association (TSSIA) Sandeep Parikh said they are opposed to the Government proposal of "new tax" in lieu of LBT.

They said representatives of industry and trade from all the 26 municipal corporations in the State met with Government officials here yesterday. At the meeting, Sudhir Srivastava, Additional Secretary (Finance) and Nitin Kareer, Commissioner, Sales Tax explained the proposed new tax.

The industry bodies deliberated the Government's proposal at length. Post-discussion, representatives from all the 26 corporations decided to reject the new tax proposal, the release said. The new levy lacks clarity and has multiple rates. Its implementation may lead to cascading effect, it said. Gurnani and Parikh said the Government should accept the traders' demand to subsume LBT into VAT (value-added tax). LBT is a tax imposed by local municipal corporations on the entry of goods into a "local area for consumption, use or sale". It is supposed to replace octroi.

PTI