Tax collection no more by BMC

The state government has taken over the rights of collection fees and taxes under the shops and establishments Act from Brihanmumbai Municipal Corporation. The civic body has opposed the move while state labour department has claimed that with the acquisition of the rights, it would be in position to implement the labour act more effectively.

Labour department had issued a notification a few days ago, abolishing the BMC rights of collecting taxes and fees from shops, hotels, malls and other establishments. This would add nearly Rs10 crore to the state coffer. Remaining collection would be retained by the civic body as operation cost. The state has blamed the civic body for the ineffective implementation of the act.

“The civic body was expected to implement other related acts that deal with minimum wages, child labour and labour contracts.”
BMC administration and employee union leaders opposed the decision in the meeting held at the Mantralaya before issuance of the notification. “Results have been impressive where the powers are already  with the government," an official said.