Mumbai - Finance Minister Arun Jaitley presented the budget on Wednesday. He mentioned that the government will reach out to trade and industry bodies to make them aware of the new taxation system. The bill will come to force on April 1, 2017. Goods and Sevice Tax aims to create a common market by combining local and central taxes into a single levy.
But the BMC has its own concerns as GST bill will abolish Octroi in Mumbai. The GST bill has the provision where the centre will compensate the local autonomous bodies in the next 5 years. Instead of the octroi collection, BMC will get an estimated revenue worth Rs 6,316.06 Crores in coming five years from GST collections, informed Bapusaheb Pawar Deputy Commissioner, (BMC).
In the current fiscal, BMC is expecting Rs 6,895 Crores from octroi collection which is about 35% of its overall revenue collection. Hence the GST compensation in 5 years is the almost equivalent to the annual octroi collection of te BMC.
After 5 years the BMC will be forced to create new income sources. This may also result in the currently richest Municipal Corporation to go bankrupt.
In the current fiscal, BMC is expecting 6895 Crores frm octroi collection which is about 35% of its overall revenue collection.