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BMC likely to retain octroi levy on textile & garments
23 Sep '08
1 min read
The proposal to exempt textiles and garments from the octroi levy is likely to get rejected with the decision of Brihanmumbai Municipal Corporation.
The decision came following a unanimous rejection of the proposal on grounds that octroi levied on import of textiles and garments fetches about Rs300 million annually.
Exemption was announced by municipal commissioner Jairaj Phatak during his budget speech in February this year. The commissioner had justified the exemption for the textile and garments stating that it would act as an incentive to one of Mumbai's leading business sector.
Mr Jairaj had suggested the abolition to stem the large scale shifting of textile industries from the city. However, political leadership in BMC spoke against the idea terming it as an undue favor to a particular sector.
Civic officials asserted that even though textile and garment sector account for only 1 percent of the total octroi collection, exemption could have an impact on other goods as well causing massive loss in collection.
The decision came following a unanimous rejection of the proposal on grounds that octroi levied on import of textiles and garments fetches about Rs300 million annually.
Exemption was announced by municipal commissioner Jairaj Phatak during his budget speech in February this year. The commissioner had justified the exemption for the textile and garments stating that it would act as an incentive to one of Mumbai's leading business sector.
Mr Jairaj had suggested the abolition to stem the large scale shifting of textile industries from the city. However, political leadership in BMC spoke against the idea terming it as an undue favor to a particular sector.
Civic officials asserted that even though textile and garment sector account for only 1 percent of the total octroi collection, exemption could have an impact on other goods as well causing massive loss in collection.
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