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This is an archive article published on October 26, 2011

Online octroi payment plan gets a push

With a view to curb the large scale evasion of octroi,the Brihanmumbai Municipal Corporation will soon do away with the payment of octroi at nakas and switch entirely to ‘e-payment’.

With a view to curb the large scale evasion of octroi,the Brihanmumbai Municipal Corporation (BMC) will soon do away with the payment of octroi at nakas and switch entirely to ‘e-payment’.

The proposal,which was mooted about three years back,has been given a push by Municipal Commissioner Subodh Kumar,who said the e-payment will increase the octroi collection of the civic body by almost 50 per cent. With a contribution of 60 per cent in the total revenue,octroi collection is the biggest source of income for the civic body.

On October 4,an affidavit filed by Kumar in the High Court stated that within a few months,the entire payment system would be online. He said the new software has been developed under the guidance of experts from IIT,Bombay and using this e-portal,octroi payments can be made directly by the importer to the corporation’s account. “At present,out of the 42 octroi collection points,we had computerised systems only at the five nakas,but now we will have them at all these points,” Kumar said on Tuesday.

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At present,most octroi transactions are carried out through octroi agents,who have a large presence at collection points,and help in the evasion of octroi.

BMC regularly detects cases of forged receipts and octroi not going into the civic coffers. Additional Municipal Commissioner Rajeev Jalota said the main purpose of this exercise is to eliminate the need of these intermediaries.

“Large corporates have complained that they have to engage with octroi agents due to the lack of any option. Through this system,they can directly make the payment and greatly reduce manual intervention at collection points. Importers/companies can do self-assessment and pay their octroi to the BMC. The e-payment facility will eliminate chances of importers being duped,” he said.

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