Agarwal hike plan shot down

Bodke said that the standing committee had been willing to negotiate the water cess hike and charge Rs 900 by abolishing the meter system. However Agarwal vehemently opposed the suggestion, as it would amount to flouting the government directive of charging water cess at a flat rate of minimum Rs 100 per month per household. A special meeting of the general body will be held on February 12 to discuss the tax proposals, Bodke said adding that the budget would be presented in the first week of March.

Agarwal had proposed the introduction of water cess at a flat rate and suggested a charge of Rs 1,500 from property owners who pay property tax upto Rs 5,000. He had also proposed to charge water cess of the property tax from those whose annual property cess was more than Rs 5,000.

The draft budget had proposed to increase the water cess three times for the tenements of the flood affected lot and rehabilitated persons at Bibwewadi and Dhankawadi. The anticipated revenue had been shown at Rs 57.50 crore by the revised system of the water cess, Agarwal said adding that it would not be possible to mop up the additional revenue of Rs 10-12 crore.

The standing committee also shot down Agarwal8217;s proposal to increase the special conservancy tax for the hotels, hospitals, restaurants and marriage halls. He had suggested that the establishments which generate garbage on a large-scale and which pay tax more than Rs 10,000 would have to pay 10 per cent special conservancy tax per year.