Pune Municipal Corporation hikes octroi on gold

Political parties on Friday unanimously passed a resolution to increase octroi on gold and silver at the maximum possible rate of 3% and 1% (of cost) respectively, but rejected a proposal to increase octroi on any other item.

The standing committee of the Pune Municipal Corporation (PMC) had recently approved a proposal to increase octroi on gold from 0.35% to 3%. Accordingly on Friday, a resolution was unanimously passed by the general body (GB), which stated that octroi on gold and jewellery be recovered at the new rates in financial year 2011-12.

The GB also passed a resolution to continue with octroi exemption on essential commodities while retaining the tariff of fiscal 2010-11 on all other items.

It would now be the responsibility of the civic administration to find other avenues to recover additional revenue for the PMC.

Independent corporator and member of the standing committee, Ujwal Keskar, had urged the GB not to slash octroi on the precious metals last year. His suggestion to hike octroi was accepted by all
political parties.

Leader of the house and group leader of the NCP, Nilesh Nikam, said that the NCP-Congress combine did not allow increase in taxes and all political parties cooperated in the decision. Leader of the opposition and group leader of the Congress, Aba Bagul, said that the ruling alliance had decided not to increase taxes in this budget.

The Shiv Sena and Maharashtra Navnirman Sena, however, claimed that the taxes were not being hiked with an eye on the upcoming civic elections.