Monday, October 07, 2013: Navi Mumbai Municipal Corporation (NMMC) is reportedly thinking of reducing tax on goods that come under the 2 per cent and 3 per cent tax slabs under local body tax (LBT). This was put in action from 1 April, 2013.
According to sources who know about the development, the report will be sent by the civic commissioner to the state government within two weeks. This will be done after holding detailed discussions with 14 different associations.
The tax cut can be expected around the festive season of Diwali. NMMC is still unclear about the uniformity in the tax slabs at 1.5 per cent and extending the reduction for domestic goods, with exception on items such as liquor, reported TOI.
The LBT legislation offers full autonomy to the civic commissioner for recommendations and forwarding proposals without taking permission from the general body. Infact, the decision of NMMC’s proposal of levying LBT at 1 per cent was not taken through the commissioner.
R M Kedia, vice president of Thane Belapur Industries Association (TBIA) told TOI, “We have demanded a uniform 1.5 per cent tax slab for the industry during the meeting.”
A letter has been circulated by the association asking members to pay 1.5 per cent tax. Kedia has said, “”The talks revolved around uniformity in the tax structure, the civic body has still not taken a decision.”
R Seshan, CEO of small scale entrepreneurs association (SSEA) told TOI, “The meeting was good and we have demanded 1.5 per cent LBT across sectors. It is true that the demand was for maintaining the 1 per cent rate, as under the previous cess system of taxation, but we would be losing out on revenue due to advantages given to the export goods and other 59 entries, which are exempted under the LBT.”
The reason that the civic body is considering tax cuts is because of industry’s insistence on reducing the LBT, owing to the current economic slowdown and competition.
