MUMBAI: Maharashtra Congress’ road to victory in the Lok Sabha polls was blocked by the BJP. The assembly polls round the corner, Chief Minister Prithviraj Chavan wants to win over the traders’ community. He has decided not to introduce Local Body Tax (LBT) Mumbai, a transparent tax collection system in an attempt to curtail the traders’ support to the BJP. The traders’ community had strongly opposed the LBT with the BJP’s backing alleging that it was complicated.
The state government has also decided to allow 26 municipal corporations except Mumbai to choose between LBT and octroi as their revenue generating mechanism. Mumbai will continue with the existing octroi system which Chavan calls “outdated” and “source of corruption”.
A senior Congress minister admitted that the decision has been taken to restrain the traders from drifting to BJP. “There is a nexus between the traders and the BJP. We had introduced LBT only after the traders complained that they were been harassed by the municipal corporations’ staff at the octroi posts. The BJP incited them to blackmail the government for abolishing the LBT. We are forced not to introduce LBT in Mumbai to keep the traders happy ahead of the Assembly election,” he said.
The NCP had pressurised Chavan to abolish LBT. It had argued that the Congress-NCP had to face defeat in the Lok Sabha polls because the traders, unhappy with LBT, had rallied behind the BJP. The BJP had held a protest march supporting the traders’ demand.
Mumbai BJP president Ashish Shelar refuted the minister’s allegation. “There are many flaws in LBT. We were supporting the traders on their legitimate demand. How can they call it nexus?” he said.
Interestingly, Chavan, a staunch advocate of the LBT, had pointed out that octroi was an outdated system and Maharashtra was the only state where it existed. The municipal corporations’ revenue had increased by almost 40 per cent after LBT was introduced. The system erased the corruption at octroi posts. However, the traders were not in favour of a clause in LBT under which the municipal corporations’ officials were empowered to check their transactions.
A committee appointed by the state government had stated that it needed to raise `17,000 crore to compensate the revenue loss if it were to abolish LBT.
STAND ON LBT
■ CM Chavan has decided not to introduce Local Body Tax (LBT)
■ The state government has decided to allow 26 municipal corporations except Mumbai to choose between LBT and octroi.
■ BJP had opposed LBT alleging that it was complicated
■ NCP pressurised Chavan to abolish it.
Benefits of LBT
■ The municipal corporations’ revenue had increased by almost 40 per cent after LBT was introduced.
■ The system erased corruption at octroi posts.
The Opposition
The traders were not in favour of a clause in LBT under which the municipal corporations’ officials were empowered to check their transactions.