BMC sees 24% drop in Octroi tax during Christmas

In some bad news for the local civic body, octroi collections during the Christmas season this year have witnessed a drop of 24%.

According to the data available with assessment and collection department of Brihanmumbai Municipal Corporation (BMC), it recorded an octroi collection of Rs121.92 crore from December 21 to 26 this year, while last year during the same period it was Rs162.26 crore.

The collection has declined by Rs40.34 crore, showing a drop of 24.86%.

"Goods flowing into the city have shown a considerable drop of Rs40.34 crore as compared to last year," a civic official said on the condition of anonymity.

Normally during festive seasons -Diwali and Christmas gift articles, electronic gadgets and other valuables from other states come in the city in great numbers.

As far as octroi collections are concerned Diwali is one of the highest profitable seasons, the official said.

However, the overall octroi collection from April 1 to December 26 this year stood at Rs3,529.37 crore while last year it was Rs3,243.19 crore during the same period.

"The rise in octroi collection is largely due to crude oil, increased vigilance and growing economy. We are hopeful of achieving the target," the official said.

The BMC has set target of Rs4,750 crore for octroi collection, which is highest source of income for civic body.