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PMC proposes octroi on essential commodities

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Express News Service

Posted: Jan 25, 2009 at 0224 hrs IST

Pune In a move to increase its revenue, the Pune Municipal Corporation (PMC) will resume charging octroi on food grains and other essential commodities.

A hike of 50 paise on the octroi of various items, including vehicles, furniture, gutka, cigarettes, panmasala, chocolate, confectionery and other items, has also been suggested by the civic administration.

Last year, in order to make people tide over inflation, the PMC had waived off octroi on essential commodities.

The deadline for the waiver will come to an end on March 31, and if the standing committee okays the hike in octroi charges, it will come into implementation from April.

The civic body has incurred an estimated annual loss of about Rs 15 crore from the octroi waiver on bajra, jowar, rice grains, wheat, jaggery, tamarind, sugar, tea, coffee, pulses and domestic gas.

Items on which a hike of 50 paise has been proposed include vehicles costing above Rs 10 lakh, paints, spare parts, musical instruments, chemicals, xerox machines, furniture etc. Also, imported items like tiles and cigars will bear hiked octroi charges of 50 paise. If the proposal is accepted by the standing committee, the octroi will be charged per 100 items on consumer durables, while octroi on food grains will be charged per 10 kg.

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