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Citizens may face traders' strike again

PMC seeks govt nod for spot verification of LBT; business assn opposes move, warns of stir

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Will Puneites be troubled by the local body tax (LBT) agitation once more? With lesser recovery of LBT, the Pune Municipal Corporation (PMC) has sought permission for spot verification of traders to collect LBT from defaulters. However, traders’ associations have opposed the move of the civic body and have threatened that if the state government gives permission for spot verification, the traders will go on strike as they did earlier to oppose LBT.

This year, citizens faced a lot of hardships when traders went on strike against introduction of LBT, which the corporation introduced from April after octroi was abolished. The strike lasted for over two weeks and after the state government accepted some of the traders’ demands, it was withdrawn.

The traders, in their list of demands, had demanded that there should not be spot verification by the PMC staffers as they might face harassment from the staffers. Reacting to the demand, the state government has given directions to all municipal corporations where LBT has been introduced that there should not be any spot verification by the municipal corporation staffers without taking prior permission of the state government.

Now, after the PMC recovered less LBT compared to last year’s octroi collection, the LBT department of the PMC has decided to tighten the screws on defaulting traders who have either not paid LBT or have not shown transparency in their trading.

Vilas Kanade, head of PMC’s LBT department said, “The collection of LBT is nearly 90 to 92 per cent compared to last year’s octroi. We have observed that some traders are not showing transparency in their trading. Some of the receipts do not have LBT number or they are not giving proper bills. Therefore, we have written to the state government seeking permission for spot verification of trading records of some of the traders. There is a provision for spot verification and we are now waiting for a nod from the state government.”

After LBT was introduced in April, the PMC managed to collect Rs495 crore as LBT by end of September. However, PMC had managed to collect Rs526 crore as octroi during the same period of 2012. After witnessing the low LBT collection, the PMC has started issuing notices to traders who have not paid LBT. “We have already issued notices to 7,000 traders who have not paid LBT. We have also conducted hearing of nearly 500 traders regarding the same. Once we get the approval of spot verification, we will be able to get details of more traders,” Kanade said.

However, the traders are not happy with the PMC’s move of seeking permission for spot verification from the state government. Popatlal Ostwal, president of the Federation of Trade Association of Pune said, “We have already written to the state government and the municipal commissioner showing our opposition for spot verification. Only after we got an assurance from the state government that the traders will not be harassed by municipal officials, we accepted LBT, but if PMC starts spot verification, we will again go on strike.”

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