Despite noteban, BMC’s octroi revenue soars

BMC collects Rs 6,652 cr (till March 4) this fiscal, eyes Rs 7,000-crore target

Written by Vishwas Waghmode | Mumbai | Published: March 8, 2017 12:33 am

 

Last year, the revenue generated from octroi was Rs 6,276 crore against the estimated Rs 7900 crore.

After recording the lowest revenue collection from octroi last fiscal, the Brihanmumbai Municipal Corporation’s (BMC) revenue collection has seen an increase of 14.54 per cent this year. Officials from the assessor and collection department of the civic body said the total collection this financial year so far (between April 1,2016 and March 4,2017) was Rs 6,652 crore. Out of the Rs 6,652 crore, around Rs 4,511 crore has been generated from octroi nakas and Rs 970 crore from crude oil.

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Officials also said that demonetisation did not affect the civic body’s revenue collection. “The revenue generated from octroi is above our estimated target so far. The reasons for the rise include the hike in the crude oil charges from 3 per cent to 4.5 per cent from August and the increased checks on the octroi nakas. Demonetisation has not affected the revenue as we continued to accept the payments either through the cheques or online,” said an official from the department.

The current financial year’s total collection is around 14.54 per cent higher than the last year’s total collection of Rs 6,276 crore. The collection from crude oil too is around 41 per cent higher than last year. “It is because of the hike in the taxes as we think there seems to be no rise in import of crude oil,” said the official.

Officials further said the octroi collection might reach up to Rs 7,000 crore by the end of March, the estimated revenue target of the civic body for the current financial year. “We deployed task forces on all octroi nakas which has resulted in the rise in collection. We are rotating their duties weekly to break the nexus that used to be earlier,” said the official.

Last year, the revenue generated from octroi was Rs 6,276 crore against the estimated revenue of Rs 7900 crore. It was the lowest recorded revenue in last five years of the civic body. In 2014-15, the civic body collected Rs 6,650 crore from octroi, while in 2013-14 and 2012-13, the civic body collected Rs 6,755 crore and Rs 6,748 crore revenues respectively.

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