PCMC to scrap Local Body Tax
Last year, the PCMC had earned Rs 1,393 crore from LBT. Although, the government has promised to release funds in proportion of LBT income, the PCMC is facing uncertainty over this large chunk of its income
Pimpri: The Local Body Tax (LBT), the main source of income for Pimpri Chinchwad Municipal Corporation (PCMC), is being scrapped from Saturday, as the Goods and Services Tax (GST) is being implemented throughout the country. With this development, the civic body will have to rely on the government for funds.
Last year, the PCMC had earned Rs 1,393 crore from LBT. Although, the government has promised to release funds in proportion of LBT income, the PCMC is facing uncertainty over this large chunk of its income.
The government has not informed the civic body about the collection of LBT, so the work of pending returns of LBT of traders will continue till further directives from the government. The government has not conveyed anything about the funds to be released against LBT so far and the ambiguity over this will continue.
Last year, the civic body earned Rs 1,393 crore from LBT. Considering this, the government should release a similar amount to the civic body.
The civic administration has prepared the proposal for demanding Rs 1,310 crore along with a 10 per cent annual hike. The State government had asked civic bodies to send details of the income through LBT along with state funds, as well as the expected amount from the State government. But the civic body has not got any confirmation from the State government.
After scrapping octroi, the State government provided new avenues of income to the civic body. The loss of octroi was compensated with LBT, stamp duty and state subsidy.
Now, LBT is going to be scrapped and the PCMC is going to lose its share from stamp duty collected in PCMC’s jurisdiction, said Mahesh Kumar Doiphode, Assistant Commissioner of tax collection department of PCMC.