The Hindu Business Line : Maharashtra traders against cess to replace octroi

Mumbai, Nov. 21 Organisations of traders in Maharashtra have long opposed octroi, as it is seen as an impediment to smooth business operations. Now they have also decided to oppose the move by the Government to replace octroi with Account Based Cess.

Federation of Association of Maharashtra (FAM), one of the largest trader bodies in the State, has decided to again re-launch its agitation against both the taxes.

Mr Mohan Gurnani, President of FAM, addressing media persons on Friday said that imposition of the new cess based on accounts of the traders would lead to “Inspector Raj” and corruption.

If the Maharashtra Government replaces octroi with cess it will create virtual checkpoints in each and every shop, he said.

A new machinery of the municipality would be required for collection of cess. It would breed corruption and ultimately the common man will have to bear the additional cost by facing increased prices.

“Whatever additional cost in terms of bribes the trader will incur would be passed on to the consumer,” Mr Gurnani said.

He added that VAT was introduced as a single tax replacing all other taxes. “Today, we still have VAT as well as octroi. Globally, VAT is a consolidated tax but in India VAT it is a multi-point taxe. Traders are willing to pay one per cent additional VAT if octroi is abolished,” he said.

He warned that in the coming days anti-octroi stir would be further intensified by the traders.

More Stories on : Trading | Taxation | Maharashtra

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