Pune: No Vehicle Entry Tax (VET) or Vehicle Entry Fee (VEF) will be charged in cantonment areas hereafter, as the Goods and Service Tax (GST) has come into effect from July 1.
The three cantonment boards in the city, Pune, Khadki and Dehuroad have got rid of their major source of income, VET, overnight.
As per the Central government directives, no tax other than GST will be implemented in the country, to bring ‘one nation, one tax’ reform, so cantonment boards have abolished VET or VEF, announced Chief Executive Officer (CEO) of PCB, DN Yadav at a special board meeting on Saturday.
This will cause a huge loss to all cantonment boards, especially Pune Cantonment Board (PCB) which had also levied Local Body Tax (LBT). PCB will suffer a loss of Rs 100 crore that includes LBT and VET.
“The board used to generate Rs 84 crore from LBT and Rs 10.25 crore from VET which has been discontinued. The board has sent a letter to Ministry of Defence informing them about loss of revenue and has demanded compensation for the same,” said Yadav.
The board members have suggested that the board send a proposal to MoD requesting introduction of Vehicle Entry Fee (VEF) in cantonment areas.
Khadki Cantonment Board (KCB) has estimated a loss of Rs 10-12 crore, while Dehuroad Cantonment Board (DCB) will suffer Rs 20 crore loss in
Advantage for consumers
GST is an advantage for consumers in PCB limits, as petrol and diesel prices have gone down by 1 per cent as LBT on fuel has been scrapped from July 1. Petrol and diesel prices in Pune Cantonment area will be now sold at a similar rate as other areas in the city.
“There are six petrol pumps in cantonment area which have been suffering because of the LBT charged on fuel here. Customers had to pay an extra Rs 2 for petrol and Rs 1.50 for diesel. After LBT is abolished, Camp’s customers will get petrol and diesel at the same price as in other areas in Pune municipal limits,” said Ali Daruwalla, spokesperson, All India Petrol Dealers Association (AIPDA).