The octroi revenue collection of the Rs 27,000 crore cash-rich BMC has increased by 6.77 per cent as compared to last year.
However, the BMC has a long way to go to meet its budget targets of Rs 7,800 crore.
In the last six months (April to September) the civic body has collected Rs 3,457.93 crore as compared to Rs 3,237.93 crore in the same duration last year, an increase of Rs 219.07 crore.
“If the current trend continues, then we are confident of crossing the mark easily by the end of March 2015, before the implementation of the next budget,” said Ramesh Arote, Assessment and Collector, BMC.
The civic body has attributed the increase in reveue collection to the changing market trends, increase in the dollar prices and a decrease in the price of crude oil which resulted in an increase in its import this year.
While the civic body earned Rs 256.88 crore because of crude oil imports in 2013, the collection this year stands at Rs 301.87 crore, an increase of Rs 44.98 crore or a 17.51 per cent increase, as per data. With the constantly rising capital expenditure over the past five to seven years, the BMC has been upping its octroi collection target every year.
Since 2006-07, the BMC has managed to cross the target set. In his budgetary speech for the year 2014-15, Municipal Commissioner Sitaram Kunte had said that octroi will remain the primary revenue source for MCGM this financial year.
The civic administration has initiated steps for transition to LBT to take place by October, 2013. However, with elections round the corner, the state government had decided not to introduce LBT in Mumbai to win the support of the traders, who have always been opposed to the system. The BMC is the only urban local body in Maharashtra where octroi is collected.