Chandigarh, September 17
The Punjab Chief Minister, Mr Parkash Singh Badal, has given the green light to the Local Bodies Department to abolish octroi from October 1, in the state.
An indication to this effect was given here today by the Local Bodies Minister, Mr Balramji Dass Tandon. The octroi issue has been hanging fire for the past several months and the BJP was upset over the undue delay in making the announcement with regard to its abolition.
The government will impose entry tax, surcharge or cess on sales tax and tax on the over-all turnover of registered dealers. The Local Bodies Department is busy working out how entry tax should be imposed. In the case of certain items, it will be on the basis of their price and in the case of others weight.
The Shakar Committee, which had been set up by the state government to study the octroi abolition issue, has already submitted its report to the authorities. Mr Badal, according to sources, has examined the report.
Mr Tandon said that a few days ago a meeting was held with traders and businessmen to discuss the octroi issue and find other resources to fund the municipal committees in the absence of revenue from octroi.
Measures like entry tax, cess on sales tax and turnover tax had been suggested by traders. However, revenue of Rs 250 crore was expected from these measures while the overall loss to the municipal committees from the scrapping of octroi would be
nearly Rs 500 crore. The gap of Rs 250 crore would be filled by the state government.
Interestingly, only three or four states like Maharashtra, Goa and Orissa have octroi. The remaining states feed the committees from other sources.
Mr Tandon said there were 142 committees. As many as 4,300 employees engaged in octroi collection in the committees would be adjusted in other government departments.
Mr Tandon said the present government had inherited an empty treasury from the previous one. But now tax collection had gone up from Rs 1,700 crore to Rs 2,800 crore.
