Thursday, May 15, 2014: Keeping in mind the upcoming Assembly elections, Maharashtra government is now thinking of getting rid of the entire Local Body tax controversy, which has been a cause of concern for the state traders. The government is reportedly thinking on the lines of scapping the LBT, which is already in force across the state except in Mumbai.
To compensate the loss in state exchequer, Maharashtra government may consider increase in Value Added Tax (VAT). It is noteworthy that LBT was imposed on the state traders in a phased manner starting 2010. The tax, that began with tier III cities, was imposed by scrapping octroi. Last year, the LBT was imposed on tier-II and tier-I cities as well, except the state Capital.
This tax has triggered protests from the traders in the state, who opined that the new tax could be an addition to the harassment by officials. Traders also thought that with VAT being under implementation, LBT was an additional burden.
But, as they say, elections change it all. It seems that the Maharashtra government has realised that it cannot afford to keep the traders unhappy. Sources from the government camps reveal that a proposal regarding scrapping of LBT is likely to be formulated soon.
