Worried over the loss of revenues in the Goods and Services Tax (GST) regime, the Brihanmumbai Municipal Corporation (BMC) has asked the Centre to provide it a separate account to ensure its financial
Worried over the loss of revenues in the Goods and Services Tax (GST) regime, the Brihanmumbai Municipal Corporation (BMC) has asked the Centre to provide it a separate account to ensure its financial stability.
According to the civic officials, with the Centre announcing implementation of GST from this year, the BMC has to gear up for the new tax regime at the earliest. However, there is an ambiguity over the distribution of revenue share under the new system.
The GST will replace the octroi system, which is the biggest source of revenue for the BMC. With collections over Rs 6,000 crore, octroi contributes 39 per cent to the civic body’s annual income. However, it will be replaced by the GST, which will replace all indirect taxes levied on goods and services by the Central and state governments.
Though the civic chief Ajoy Mehta denied speaking directly on the GST, he said the BMC has sent some of its conditions to the Centre over the new tax system. “We have said that the BMC’s share should be fixed and there should a separate account, in which it will be deposited,” he said while presenting the budget for 2016-17.
