Octroi: Lowest revenue expected this fiscal

Estimates for revenue income from octroi for 2015-16 were recently revised from Rs 7900 crore to Rs 6650 cr

Written by Vishwas Waghmode | Mumbai | Published: March 10, 2016 2:58:41 am
BMC, For 2016-17, the civic body has estimated the gross revenue of Rs 7,000 crore from octroi.

FOR the first time in the last five years, the Brihanmumbai Municipal Corporation is worried that it will record the lowest revenue collection from octroi, a major source of revenue, in the current financial year.

Officials from the assessor and collection department of the civic body said the total collection as on March 8 is Rs 5,850 crore. Recently, the civic body revised its revenue income from octroi to Rs 6,650 crore as against Rs 7,900 crore as estimated in the budget estimates of 2015-16.

“Though we have revised the target, we won’t be able to meet that till March end. This would the first in last five years to record the lowest collection from octroi,” said a civic official.

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Of the Rs 5,850 crore, the revenue from the crude oil is Rs 1,517 crore, which is minus 28 per cent.

“Due to the fall in crude oil prices, we are not able to get the expected revenue. It has reduced our overall collection. Earlier, the crude oil price used to be 146 US$ per barrel. Now, it is 40 US$ per barrel and it keeps fluctuating. So there is huge difference in the crude oil prices which is making it difficult for us to achieve our target,” explained the official.

In 2014-15, the civic body had 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 revenue respectively.

Another official said the average daily collection from octroi is around Rs 12-13 crore. So in all, we may able to reach around Rs 6,100 crore revenue collection, said the official. However, for 2016-17, BMC has estimated the gross revenue of Rs 7,000 crore from octroi.

In last month, in its internal report, the civic body had stated that the production units of the Godrej and Boyce, Mahindra and Mahindra, and Larson and Turbo have moved out of the city among other reasons for the losses in revenue from octroi.

The reduction in revenue will have an adverse impact on the civic services such as primary eduction, hospitals, roads. Also, the various development works undertaken by BMC will be struck, he added.

vishwas.waghmode@expressindia.com

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