Amid protests,DCB looks to privatise octroi collection

The cantonment board opened the tender documents today despite the shutdown observed by traders of the area for three days from Thursday to Saturday to protest the decision. The baazar however remained open today after people were assured that the decision to collect the tax through private hands has been deferred.

“We opened the bid documents today and the offer rates which have been quoted will be opened later. The tender documents which have been opened will be scrutinised by a chartered accountant,” said NM Mahajan,spokesman of Dehu Road Cantonment Board. He said the board was of the view that the privatisation of the octroi and other taxes will help it to increase the revenue collection. “We expect that the tax collection will increase from the present Rs 7-9 crore,” he added.

DCB vice president Sanjay Pinjan however said the board will get profit through the privitisation and money collected will only be used for the development of the cantonment area. “It will be the responsibility of the cantonment board to make the tax collection operations smooth. The traders will have to pay the same money,but the collections will increase as it will also reduce the dependance on manpower of the cantonment board,” he said. Besides the octroi,the Dehu Road Cantonment Board also plans to privatise the collection of vehicle entry and transit tax. However,local traders and some cantonment board members say that the privisation may create a law and order problem in the cantonment area.”

“The private agencies in order to increase their tax collection targets use muscle power which may result into the law and order problem within the cantonment area. Such things had happened in Aurangabad,” said cantonment board member Sanjay Raut. He said that the cantonment board should plug the loopholes’ in the collection of taxes rather than hand over octroi collection to the private agency.”

Vasan Mehta,a shopkeeper,said the privatisation of octroi and other taxes should’nt be allowed. “People fear that the private agency will illegally extract money from them in order to meet the targets,” he said.

Mahajan said rates which have been offered through the tenders will be finalised in the cantonment board meeting on October 4.