IN a major relief for citizens outside Mumbai,the two-week strike called by traders against Local Body Tax (LBT) has been called off. The announcement came after representatives of various traders organisations held a meeting with Chief Secretary J K Banthia and Chief Minister Prithviraj Chavan. Some of their demands had been accepted,traders said. The strike had caused a rift among traders organisations,with entities such as Federation of Associations of Maharashtra claiming that they would continue the strike. One of the major demands was the deployment of sales tax officials for assessment of LBT in Municipal Corporation limits. Traders associations have been claiming that powers of assessment of LBT should be handed over to the sales tax department as municipal corporations lacked experienced officers. We are ready to consider the traders demands of having independent LBT assessment officers. These officers could be sales tax officers or from the states accounting division. We have asked Urban Development Department to facilitate the appointment of such officers, said Chief Secretary Banthia. During the meeting,the state also said it would consider reducing LBT rate from two per cent for purchases of over Rs 10 lakh to one per cent. The state government has,meanwhile,also decided to assuage the traders doubts pertaining to search and seizure of defaulters goods. Traders have misgivings about harassment at the hands of the municipal officials in the form of malafide search,seizure and assessment. Banthia,however,clarified that all search and seizure activity would take place only with the permission of the UDD Principal Secretary. The traders later met Chief Minister Prithviraj Chavan at Sahyadri before officially calling off the strike. However,the wholesalers strike in Mumbai continues. Wholesalers are expected to hold deliberations with the state government Tuesday. However in view of the assurances given by NCP chief Sharad Pawar,FAM has decided to ask retailers to withdraw the strike and open shops from Tuesday. But a decision about the wholesalers in this regard was deferred till Tuesday,as there is no clarity on registration of LBT by traders. Since there is no clarity on the registration of the LBT by the traders,FAM has decided to defer the decision of wholesale markets to tomorrow. FAM shall decide about the wholesale markets in a meeting to be held tomorrow. The Bandh of Wholesale markets therefore continues, Federation of Associations of Maharashtra President Mohan Gurnani said. FAM has also threatened to protest during Congress vice president Rahul Gandhis upcoming Mumbai visit. mumbai.newsline@expressindia.com State may put on hold LBT in city THE state government is likely to put on hold its decision to enforce LBT in Mumbai from October 1 in the wake of protests from traders and political parties who control BMC. A senior Congress Cabinet minister said,The state government will have to first amend the Act in the Assembly that would require a consensus before it can enforce LBT. In view of the 2014 elections,the government may not push for LBT in Mumbai if members of the ruling Congress and NCP are not comfortable with the new Act. Shiv Sena and BJP have also opposed LBT. Chief Minister Prithviraj Chavan recently said,In the case of Mumbai,the government is ready for a thorough discussion on LBT in the state Assembly and council. On Monday,BJP state president Devendra Fadnavis wrote to Chavan urging him to replace LBT with turnover tax on VAT. Fadnavis said,LBT is better than octroi in some aspects,still it is complex. It will increase the compliance burden of traders. The local bodies are not competent to enforce this account-based levy. mumbai.newsline@expressindia.com State Promises Assessment of LBT will not be done by civic officials but by any of the states accounting departments,including sales tax Municipal commissioner will remain appellate authority against all fines imposed under LBT Government willing to consider decreasing LBT of goods over Rs 10 lakh from two per cent to one per cent Search and seizure of goods to take place only after permission from UDD Principal Secretary
