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Vehicles queue up at octroi nakas in a rush to beat GST

In 2016-17, the total octroi collection in the city was Rs 7,200 crore.

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There was a sharp rise in the number of vehicles entering the city on Friday, the last day of octroi collection. The rush was seen at all the five check posts where octroi was collected until now. Octroi collection stopped from the midnight of June 30.

The Mumbai-Panvel Highway check post in Mankhurd used to receive around 2,500 vehicles loaded with goods. However, on the last day, the number crossed 3,000 by the evening. According to officials, the number might increase further in the night as several vehicles were en-route to the city.

Officials from the Assessment & Collection Department of Brihanmumbai Municipal Corporation said that all check posts saw similar surge in the number of vehicles.

The department collected 30 per cent more octroi in the last three months compared to the same period last year. "Till June 29, total octroi collection was around Rs 1,800 crore, and we expect the trend to continue on the last day," said Bapu Pawar, Deputy Municipal Commissioner, Assessment & Collection Department, BMC. 

In 2016-17, the total octroi collection in the city was Rs 7,200 crore.

Under the GST some luxurious items will be taxed 28 percent, and traders in city do not want to leave opportunity to procure products at cheaper rate right now. "Some of the luxurious items will be taxed more under the GST and this is why traders rushed to procure the same product at low cost," said an official from Assessment and Collection Department.

Even after the Goods and Services Tax (GST) rolls out on July 1, the five check posts of BMC that collect octroi will continue to function for at least six more months. These check posts will not collect octroi after June 30 midnight, but will continue with clerical work.

A senior official from the Assessment & Collection Department said that important documents have been stored in these check posts and the wrapping-up clerical work will take some time to finish.

The Mumbai-Panvel Highway in Mankhurd has around 140 employees who work in three shifts. "After June 30 midnight, all of them may not be required," said an official from the check post. He added that they have been asked to come for at least one month until a decision regarding shifting of staff. The five nakas together have around 1,200 employees, said the official.

However, the official added that staffs will gradually be shifted to other departments. At present, the Assessment & Collection Department has shortage of staff in its property wing. "We need people in the property department and we have planned to shift them," said the official, adding that additional staff from the octroi department will be used for collecting property tax.

The BMC has proposed to develop these octroi nakas into Central Business Districts (CBD) and even there, there will be provisions to use octroi nakas as parking transport hubs and commercial spaces in the revised draft development plan (DP) 2034 of the city. However, there has not been much development in this regard.

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