Octroi idea does not sell at small industries

Members of the Pimpri-Chinchwad Small Industries Association (PCSIA) staged a demonstration outside the Pimpri-Chinchwad Municipal Corporation (PCMC) head office on Thursday to press for their demand to abolish octroi instead of rationalising it.

The civic body has tabled the proposal to rationalise octroi before the general body. Strongly opposing the proposal, the PCSIA has demanded that PCMC should abolish octroi in the twin town. Industrialists gathered in large numbers outside PCMC and distributed pamphlets to corporators and visitors visiting the PCMC office.

PCSIA president Nitin Bankar told DNA, “The rates of raw material have increased due to octroi. Octroi has been levied only in Maharashtra due to which the twin town that was recognised as the industrial hub has lost its identity. The big companies have shifted their plants to other states, so it is very difficult for small-scale industrialists to survive.”

Bankar added that due to globalisation, the competition had increased tremendously. “The PCMC generates revenue from other sources as well and there is no need to rationalise octroi. We want the civic administration to abolish octroi and help the industries to flourish,” he said.

PCSIA vice-president Sanjay Aher, secretary Sandeep Belsare and treasurer Sanjay Jagtap were also present.

The members added that it was impossible for the industrialists to run their businesses in Pimpri-Chinchwad due to strict norms and high rate of octroi.

The members said, “We have to pay 3% more for raw materials as compared to neighbouring industrial hubs like Talegaon, Chakan and Ranjangaon. Small vendors from Pimpri-Chinchwad face difficulties in getting orders from neighbouring industries because their rates are high due to octroi duty. So, octroi abolition is the only solution to the problem.”

The Root Of The Matter

The PCMC has proposed to rationalise its octroi rates and tabled the proposal before the general body for approval. At present, there are 16 different rates charged by the octroi department for 86 types of registrations under octroi rules of the civic body.

According to the proposal, the octroi department has stated that octroi on essential goods will be within the range of 1 to 3%.

Octroi on non-essential goods will be in the range of 2.6 to 5%. Besides, octroi on various other items have also been listed in the new proposal.

The octroi on steel and iron items will increase from 2.25% to 2.60% after rationalisation. Octroi on glass, tiles and machinery is expected to reduce from 3.5% to 2.60%.

Suggestions and objections will be invited from citizens after the GB approval, following which a hearing will be held on the suggestions and objections received. The proposal will then be sent to the state government for final approval.