No share from GST and LBT makes KCB go through financial difficulty

Neha Basudkar
Thursday, 19 April 2018

Pune: The Khadki Cantonment Board (KCB) is facing a cash crunch as they have not received the compensation after the State government abolished the Local Body Tax (LBT) on August 1, 2015. They are also not getting their share from the Goods and Service Tax (GST). The Board is sustaining on the money generated through Ammunition Factory Khadki (AFK) and vehicle entry fee. According to KCB officials, the current losses for the board is Rs 26 crore. 

Pune: The Khadki Cantonment Board (KCB) is facing a cash crunch as they have not received the compensation after the State government abolished the Local Body Tax (LBT) on August 1, 2015. They are also not getting their share from the Goods and Service Tax (GST). The Board is sustaining on the money generated through Ammunition Factory Khadki (AFK) and vehicle entry fee. According to KCB officials, the current losses for the board is Rs 26 crore. 

Through local taxes, the board collects Rs 2 crore per annum, while through AFK it is Rs 34 crore and vehicle entry fee is Rs 10 crore. According to a senior revenue officer of KCB, "Earlier the Cantonment used to collect Rs 26 crore from octroi but after both octroi and LBT were removed, we were supposed to get compensation, but we have not got anything. After implementation of LBT, the State government was supposed to give us the share from LBT but they did not do so. This is the case with GST too. The tax collection of the Cantonment per annum is Rs 2 crore. 

The expenses, salary and maintenance of the Cantonment office reaches Rs 3 crore per month and thus the Cantonment cannot sustain on the revenue generated through AFK and vehicle entry fee.

“Till the financial year 2014-15, AFK used to generate very less revenue which was up to Rs 6 crore. But later the KCB replanned the finances and from the financial year 2015-16 the board started receiving more than Rs 30 crore,” said a senior KCB revenue officer. 

While speaking to Sakal Times, Amol Jagtap, the Chief Executive Officer of KCB, said, ‘We have been writing to Maharashtra Government to provide us compensation for LBT and a share of GST. 

We are incurring losses of Rs 26 crore. Although, we get funds from Defence Estates, New Delhi, we cannot take on big projects due to paucity of funds thus it has affected the development projects,” Jagtap said.

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