Friday, January 17, 2014: The Navi Mumbai Municipal Corporation (NMMC) has forwarded a proposal to the state government requesting to reduce the tax slab for the city. The NMMC commissioner Abasaheb Jar has confirmed the development but has refused to give details of the proposal. But another senior NMMC official that had played a critical role in preparing the revised tax structure, said, “NMMC has recommended reducing LBT for major goods in order to provide relief to citizens and traders. The civic body has suggested minor changes in some other categories, too. Now, the corporation will have to wait for the Mantralaya’s decision.”
As stated on timesofindia.indiatimes.com, earlier in December 2013, TOI had stated that the civic body would submit the proposal to the state government by beginning of January for its approval. As per the civic body officials, the corporation has made an estimate regarding the reduction in its revenue receipt target by nearly Rs 125 crore due to changes in the LBT. Before LBT, the civic body made an annual collection of the cess of nearly Rs 425 crore, but post introduction of the LBT, the civic body had estimated a revenue collection of nearly Rs 825 crore.
LBT was introduced in various cities by DF government to replace octroi or cess. LBT is a tax that is levied on the entry of good for use and consumption within the jurisdiction of local municipal body. But getting miffed with government taxing policies, last year, traders protested against the LBT and asked for a reduction in the existing tax structure proposed by the government.
