Puneites may have to brace up for price hikes

Already having shot down the proposal to waive off octroi on petrol, the Pune Municipal Corporation (PMC) is all set to increase the octroi on several essential commodities.

A proposal will be placed before the law committee during its meeting on Thursday. If the proposal moved by the civic administration is approved, Puneites will have to shell out more bucks for purchasing essential commodities.

The increase in the octroi has been sought on the ground that the city has grown and the civic body needs more revenue to implement development projects.

According to the proposal, the PMC octroi rules, which were framed in 2008, had set minimum and maximum limits. But the rates have reached the maximum limit and there is no further scope of increase unless the maximum limit is raised further.

The PMC proposes to charge 30 paise for 10 kg food grain as against complete exemption at present. Cereals having octroi exemption will be charged 70 paise per 10 kg. Octroi on grocery, vegetable oil, coconut, dates, milk cream, khoya and paneer is 50 paise at present but the civic body proposes to hike it to 80 paise.

There is 50 paise octroi on edible oil, fruits, fish, eggs and chicken and the proposal seeks to hike it to 80 paise.

There is no octroi on domestic LPG cylinders at present
but the civic administration proposes to charge Rs6 per
cylinder.

Sugar is exempt from octroi at present but the proposal seeks to charge Rs2 for sugar worth Rs100. Similarly, there is no octroi on coffee and tea but the proposal seeks to charge Rs6 for coffee and tea worth Rs100.

The civic administration has also recommended that the octroi on computer software and hardware and television which was Rs4 be doubled to Rs8. In the same manner, octroi on cigar and tobacco will also be doubled from Rs8 to Rs16.

There is no change in octroi on gold ornaments, gold biscuits, gold bullion, diamonds, platinum ornaments and precious metals. At present, the octroi is Rs3 for gold worth Rs100.