GST to affect cantts’ revenue
“The PCB will incur an estimated loss of around Rs 80 crore, after abolition of LBT,” said CEO of PCB, DN Yadav
Pune: With the rollout of Goods and Services Tax (GST) on July 1, the city cantonments’ chief executive officers (CEO) are likely to feel the pressure soon in terms of generating revenues. The cantonments will have to get rid of other taxes like Local Body Tax (LBT) levied by Pune Cantonment Board (PCB) and Vehicle Entry Tax (VET) by PCB and Khadki Cantonment Board (KCB).
Although, the boards are not sure about scrapping of VET as the Central government has not given any framework related to VET. Hence, whether VET will be discontinued after GST comes into effect, is yet to be confirmed, said CEOs of both the cantonments.
“The PCB will incur an estimated loss of around Rs 80 crore, after abolition of LBT. We are not sure about the VET cancellation, as no notification regarding the same has been given to us. The Ministry of Defence and Ministry of Finance are discussing the issue but the cantonment will suffer a loss,” said CEO of PCB, DN Yadav.
The Central government is yet to compensate the amount for the abolishment of octroi.
“The amount of loss can be figured only after GST is implemented. KCB levies only VET and no other tax but we are still not sure whether VET will be ruled out or not. Accordingly, the board will be able to figure out the loss,” said CEO of KCB, Amol Jagtap.
“The Central government has still not recompensed the amount of loss suffered due to the abolishment of octroi. We are still bearing its loss. Already, the cantonment remains neglected by the State and the Central governments, due to which we suffer on generating revenue for the body. GST will only add to the crunch. If the government abides by its promise to compensate some amount of the loss, then it will not affect us much,” said Jagtap.