Govt may rope in sales tax officials
Amid mounting pressure from every corner, the state government has now decided to soften its stance on the demands made by traders who are on strike against the implementation of the Local Body Tax (LBT). The government is contemplating on the appointment of existing and retired sales and income tax officers for the assessment of the LBT. An announcement by chief minister Prithviraj Chavan is expected very soon in this regard.
Chief secretary Jayantkumar Banthia on Friday held a meeting with the representatives of the Pune Merchants’ Association (PMA) over the implementation of the LBT. Mr Banthia said that the demand of the LBT assessment by the sales tax department was not possible. However, it is seriously considering the appointment of the existing and retired officials from the sales tax and income tax department.
He said, “The government was not in favour of curtailing the power of the municipal corporations. But the government would ensure appointment of the officers with the expertise.” The members of the PMA were also assured that the exemption of a few more goods from the new tax system, which were also exempted in the Octroi regime, would be considered, the chief secretary said.
Traders have demanded the implementation of the LBT through the sales tax department, instead of the Brihanmumbai Municipal Corporation (BMC), as they are of the view that this would lead to corruption and the BMC officials don’t have the expertise to assess such a tax regime.
However, government officials believe that certain misconceptions have influenced the traders at some points. According to a senior official, “The traders have the fear that the taxes would also be applicable on the sale of the goods and they will have to maintain the records. We have explained to them that only the purchase records have to be kept and those records that are older than one year could be destroyed, if a notice is not served to them by the municipal corporation.”
Meanwhile, the Nashik Municipal Corporation (NMC), has issued notices to the traders, professionals and organisations, informing them that the the new system of the Local Body Tax (LBT) would be implemented from May 22.
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