LBT to hurt KCB,year-end payment comes as saviour

With the Pune Municipal Corporation (PMC) all set to implement Local Body Tax (LBT) from April 1,the Khadki Cantonment Board (KCB) is likely to lose the monthly octroi it has been receiving from the civic body for years.

Written by Express News Service | Published: March 31, 2013 1:19 am

With the Pune Municipal Corporation (PMC) all set to implement Local Body Tax (LBT) from April 1,the Khadki Cantonment Board (KCB) is likely to lose the monthly octroi it has been receiving from the civic body for years. What might sail the board through are arrears the municipal corporation will be paying as year-ender.

The state government’s decision to scrap octroi and implement LBT will come into effect from Monday. KCB too has decided to impose LBT to fill the deficit generated after scrapping octroi.

Earlier,Pune Cantonment Board (PCB) had also initiated steps to implement LBT within its limits.

In the meeting that took place in the KCB Saturday,a decision was taken to send a draft proposal of the LBT implementation to the law ministry.

KCB CEO SVR Chandrasekhar said the draft proposal,once ready,will be given 30 days for inviting objections and suggestions from citizens after which the issue will be discussed in the board meeting. Chandrasekhar informed the actual implementation of LBT in KCB area may take about two months given the whole procedure of getting a final draft and the approval may be time consuming and that implementation will be made only after the nod from competent authorities.

According to Section 66(2) of the Cantonments Act 2006,the cantonment board has the power to impose any tax which under any enactment for the time being in force may be imposed in any municipality in the state where the cantonment is set up.

Octroi has been the prime source of income for the cantonments.

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