LBT gambit: Traders told to give Octroi records, annual reports

The Brihanmumbai Municipal Corporation (BMC) has issued notices to traders demanding Octroi-related records for the last three years. The civic body has also asked all businessmen to furnish their annual reports. However, the traders are upset with the latest move by the civic body.

The traders are now planning to take up the issue with the authorities through their respective associations. “The BMC’s move raises suspicion in the minds of the traders, who are not happy with the implementation of the Local Body Tax (LBT). There are several questions which casts doubt on the civic body’s step of seeking annual reports along with the detailed information about our imports,” said a trader from Nana Chowk.

The BMC has sought the details to review the amount of Octroi recovered from the importers and traders. Details will be taken into account while preparing the reports to build case stronger for the LBT. However, before implementing the LBT, not only the civic body plans to make a stronger case as to why Octroi should be abolish and bring in a transparent system – LBT, the BMC will also have chance to recover the penalty amount from the importers who have managed to skip the tax.

“Penalty amount will be 18% per year as against official octroi of 5.5%. All the big fish will be in the net if their records do not tally with our figures. There are several cases where Octroi agents have not paid the full amount but have issued bogus Octroi receipts. The civic administration is intending to settle the dues and accounts. Also, this will prove as a clean-up act before implementing,” said a senior officer.

Another trader said there were loopholes in the earlier system, which created a getaway for the importers who use to stock their goods in warehouses outside Mumbai region so that they could avoid paying up heavy Octroi, which is almost 5.5% of the total value of the goods.

But what actually worries the traders is the amount of penalty they might have to cough up, in wake of mismatch of records. “It is not a notice, but a request letter to all the regular importers who will simply have to furnish the required details,” said Rajendra Vale, deputy municipal commissioner.