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Wednesday, September 9, 1998

BMC willing to reduce octroi

EXPRESS NEWS SERVICE  
MUMBAI, Sept 8: In a major turnaround, mayor Nandu Satam today declared that the Brihanmumbai Municipal Corporation (BMC) was open to the idea of a reduction in the two per cent octroi duty on medicines.

Chemists all over Mumbai had gone on a three-day strike last week to protest the duty levied two weeks ago. At a marathon meeting with chemists' associations at his bungalow today, Satam said that he would consider a reduction in the octroi provided the BMC could tide over the sum of Rs ten crore that would accrue through some other sources.

But despite the fact that in spirit at least the BMC seems willing to address the chemists' problems, it seems unable to do so in letter. As always, the problem comes in the face of a technicality.

Or more specifically, a Corporation Resolution (CR) which, Satam said, has already been framed after the proposal was passed by the Mayor-in-Council and later approved unanimously by the general body of the corporation. What this means in effect is that the BMC cannot forthe next three months at least do anything about changing its decision on the octroi levy.

Had the issue been raised, he pointed out, before the CR was framed, "it would have been much easier to consider the proposal of the chemists. But that could never be for the simple reason that till the octroi announcement was formally promulgated, the chemists would have never gone on strike." So now, seemingly at a dead end, the BMC has decided to approach the state government for guidance. "We have also decided to approach senior members from the BJP -- Sena and may also approach the chief minister Manohar Joshi, if needed," said Satam. The state government has the proviso to strike down any CR of the BMC.

The officials today also agreed to look into a proposal by the chemists suggesting that the BMC should increase the octroi duty on plastic items for medical use. Agreeing to this Satam has asked the chemists for a day or two to work out whether the proposal would generate the same revenue for the BMC as theoctroi duty on medicines. A proposal by the chemists to increase duty on milk-foods and cosmetics was, however, rejected.

Wholesale traders observe bandh

Wholesale traders in Mumbai and Navi Mumbai today observed a day's token bandh protesting the hike in octroi duty on several goods by the Brihanmumbai Municipal Corporation (BMC).

The bandh, seeking a complete abolition of the duty on all commodities, was called by Federation of Associations of Maharashtra (FAM), supported by the Mumbai and Thane small scale industries' associations.

Describing the bandh as total, an FAM spokesman announced that the agitation will be intensified if the octroi duty was not abolished. ``We have written to Chief Minister Manohar Joshi detailing our demands,'' he added.

Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.


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