Civic body counts revenue losses as big manufacturers move out of Mumbai

Octroi is the BMC’s largest revenue source with annual collections of around Rs 7,000 crore. Other reasons cited for low octroi collections this year include the fall in oil prices and economic recession.

“Since the production units of these manufacturing units have moved out of Mumbai, the civic body is losing revenue from the all goods that they used to import,” the report states.

The report further admitted that the BMC will, this year, not be able to meet its estimated gross revenue income of Rs 7,725 crore from octroi for the current financial year.

Until January 31, the civic body received Rs 5,230 crore only from the octroi department. In 2014-15, the civic body received Rs 6,650 crore revenue from octroi.

For 2016-17, the civic body has estimated a slightly lower target of estimated octroi revenue at Rs 7,000 crore.

Last week, the Maharashtra government organised the Make In India Week in Mumbai and made a pitch for more investments, especially in manufacturing, in Maharashtra. Chief Minister Devendra Fadnavis also announced the need for having a ‘Built In Mumbai’ Week to focus exclusively on providing affordable housing to citizens.

The BMC’s report added that octroi will be abolished after the Goods and Services Tax is introduced following legislation by Parliament, and that the Union government has indicated a compensation for the civic body for five years.

“If the said compensation is less than the revenue generated from octroi, then it is likely to have an adverse impact on civic services, such as primary eduction, hospitals, roads. Also, the various development works undertaken by the civic body will be struck,” added the report.
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