Octroi, property tax collection soars this year

  • | Sunday | 26th March, 2017

Last year revenue from property tax was Rs 4,900 crores. Mumbai: Even as the BMC is gearing up for its financial budget, revenue from two of the biggest money spinners namely octroi and property tax has soared significantly this year. "Several people are known to come ahead and pay property tax during the last few days and therefore we are hoping to meet our target set," added Pawar. The BMC however soon would not be able to collect octroi considering the same is being replaced by Goods and Services Tax (GST). The BMC also increased the octroi on crude oil from 3% last year to 4.5%."

Mumbai: Even as the BMC is gearing up for its financial budget, revenue from two of the biggest money spinners namely octroi and property tax has soared significantly this year. In fact the revenue received by the civic body from octroi till Friday surpassed its annual target.The octroi collection by the BMC for the current financial year 2016-17 on Friday touched Rs 7,000 crores against a target of Rs 6,950 crores. In the last financial year, the BMC's revenue from octroi was Rs 6,300 crores which fell short of the target of Rs 6,800 crores.Civic officials said that there were many reasons for this increase, importantly the rise in crude oil price. A civic official said, "Last year the crude oil price was 30 dollars per barrel but in December 2016 it touched 50 dollar per barrel. The BMC also increased the octroi on crude oil from 3% last year to 4.5%." The BMC however soon would not be able to collect octroi considering the same is being replaced by Goods and Services Tax (GST). Deputy municipal commissioner B G Pawar said that vigilance at octroi nakas has increased and action up to suspension has been initiated against errant officials.The property tax collection in the current financial year has been Rs 4,000 crores while the target set up by the BMC is Rs 5,200 crores. Last year revenue from property tax was Rs 4,900 crores. "Several people are known to come ahead and pay property tax during the last few days and therefore we are hoping to meet our target set," added Pawar.

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