Few takers for DCB move to outsource tax collection

Officials say in the last one year,the board invited proposals thrice and public notices for the bids were issued at the national level as well,but no private party showed interest. Mahajani said there was no response earlier because the minimum collection that agencies were asked to submit annually was higher than the collection the board makes on its own. In the recent bid,the board has reduced the minimum reserve price to Rs 20 crore from Rs 25 crore. The board on its own collects Rs 17-18 crore annually. Mahajani said other formalities related to the submission of documents have also been eased.

“Besides the earnest money deposit of Rs 40 lakh,the private parties were asked to get a bank guarantee that they would be able to pay the board Rs 2 crore in case of default,” said Mahajani,adding that the agencies would have to post their collections every week,and by the end of the year,they should have paid Rs 20 crore.

Chairman of the Board’s finance committee,Ashok Shelar,said privatisation would not only help the Board increase revenue but also make its staff available for other works. “The bids are being opened on Tuesday,following which the board will hold a meeting to take a final decision,” he said.

The board has mooted privatisation of the three taxes — octroi,entry tax and transit fee. While entry fee is levied on passenger vehicles,octroi and transit fee are imposed on goods vehicles. Octroi is collected if the goods are to be unloaded within the Board’s limits,while transit fee is charged to allow the goods vehicles to pass through the area.