Mumbai: The Maharashtra government may introduce a tax intended to replace the local body tax in all the local bodies of the state except Mumbai, due to the steadfast opposition of the Brihanmumbai Municipal Corp to any tax other than octroi.
The new tax will now be collected by the sales tax department. “We are changing the collection machinery but the incidence of tax would be exactly the same,” Sudhir Shrivastava, additional secretary, State Finance Department, told Cogencis.
The state government was earlier considering implementing a surcharge on value added tax in place of the local body tax, which has been opposed by traders as they believed the rate was higher than the local body tax.
Chief Minister Prithviraj Chavan on Friday announced that the surcharge on value added tax alternative was acceptable to the state government, but the Brihanmumbai Municipal Corp was not ready to accept it. “Surcharge on value added tax is not workable unless Mumbai is on board,” Shrivastava said.
“The Brihanmumbai Municipal Corporation is okay with Octroi and they don’t want to be disturbed. The officials in the corporation feel that there is no agitation against the current tax in the city, so they should continue with the system,” said Shrivastava.