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Octroi Duty in Mumbai to be Abolished after GST Implementation

One common unified tax will be applicable after the introduction of GST. GST Regime will replace octroi duty and nearly 1,300 employees of the Brihnamumbai Municipal Corporation (BMC) will be fired from the job. People who are working in the Octroi Department which include five check posts at Mumbai’s entry-exit points will be jobless.

Now the BMC is thinking to transfer 1,300 members in other departments such as assessment, general, audit and control administration. Tax assessment and collector Department officials said there is a vacancy to fulfill about 600 posts. The audit department also has a requirement of about 300 posts. This may consider of nearly 900 staff members of Octroi Department. Senior civic officials said they will make a decision where to transfer the remaining staff in upcoming 15 days.

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An Official said, “We will either take an examination or reshuffle people on the basis of their seniority. We will take a call in the next few days”. Nearly more than one lakh people are working in 108 departments and 24 wards in BMC. BMC officials also have to take a call on the usage of various Octroi collection points in the city.

In last week, the State Assembly has passed the GST bill replacing Octroi as revenue from the civic body. The Brihnamumbai Municipal Corporation (BMC) gains nearly Rs.7,000 crore from the Octroi Department in a financial year. In the duration of April 1 and May 19, 2017, the BMC has already gained Rs 936 crore, 24% more than as compared to 2016 in the same period.

Talking about the 2016-17 financial year, the Central and the State Government will counterbalance the civic body at 8% interest rate. During the 2016-17 budget speech, BMC commissioner has made an approximation of Rs.1,500 crore from Octroi in the remaining months and Rs 5,883.75 crore as compensation from the state for the rest of the year.

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