BMC to bear LBT study expenses
The move to shift from octroi to the Local Body Tax (LBT) will cost the Brihanmumbai Municipal Corporation (BMC) further more due to the increase in the expert committee’s expenditure. The civic body will also bear the cost of aviation tours of the committee members.
The BMC had appointed a committee consisting of experts from the University of Mumbai and Tata Institute of Social Sciences (TISS) to study the effects of LBT before its implementation in the city. The report from this committee is expected to be submitted by the end of this year.
According to the civic officials, the initial cost of this project was `29.16 lakh. The committee will be attending several seminars and workshops in the country regarding the LBT, for which the BMC will bear the aviation cost. Changes in certain conditions by the Tiss has also led to an increase in the cost of the project by `8.74 lakh.
The proposal for escalation in the project cost will be tabled before the civic standing committee for approval on Friday.
The civic body is planning to implement the LBT in the city from October 1 by abolishing the octroi system. The LBT is an account-based system where the traders and the businessmen will be responsible for the monthly payment of tax by the way of self declaration. This tax will be paid directly to the BMC.
In the current octroi system, the person has to pay octroi on the bills of goods, which he has bought for personal onsumption. The new LBT will relieve him from paying any further.
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