The minister made this announcement while speaking with the members of PHD Chamber of Commerce and Industry (Phdcci) here on Wednesday.

He explained that the transit tax will result in cutting transit time, doing away with harassment at several octroi posts and optimising the state revenue.

The decision is significant as the detention time of trucks at check-posts will be done away with and up to 15 per cent fuel-saving will be possible. Unethical practices at the multiple octroi checkposts will be drastically checked, besides enabling faster movement ofgoods through reduction in transit time.

The state government is keen to increase the revenue through transit tax as the present octroi revenue in 1997-98 is Rs 350 crore.

On the issue of stagnation in infrastructure development, the ministercategorically said there were practically no funds for capital investment in infrastructure although the cities and towns were bursting with the heavy burden of increasing population.

The Phdcci members suggested the reimposition of property tax as the users must share the cost of civic services, particularly as the state government and local bodies are facing a financial crisis. In no case, efficiency and higher productivity of municipal workforce should be compromised, felt the members.