Oppn, traders refuse to bite Modi bait on octroi

But the date proposed for bringing the abolition into effect is contentious. It happens to be Laabh Pancham, November 15 this year, and the model code of conduct for the Assembly elections is expected to be in force by then.

Officials in the state election department refused to comment on whether decisions taken before the announcement of the polls could be implemented while the model code was in place, but the Opposition leaders are ready to make the most of the matter.

Shaktisinh Gohil of the Congress insisted that it would amount to violation of the code. “The state Government’s decision to abolish octroi is merely an election stunt,” he said, pointing out that the Modi Government has been “sleeping” on the issue for the past five years.

Even the state Finance Minister Saurabh Patel’s statement that the decision would be implemented before Laabh Pancham has done little to assure the traders. The business community is well aware that the decision may not be implemented till an alternative formula for generating a regular income for the municipal corporations is worked out. It will not be an easy task, given the fact that the annual octroi income of the seven municipal corporations of Ahmedabad, Vadodara, Surat, Rajkot, Bhavnagar, Jamnagar and Junagadh together amounts to Rs 1,800 crore approximately. The traders have even submitted suggestions to the Modi Government on how to make up for the loss. Among the alternative strategies proposed are: A cess on VAT and an increase in property tax. Traders believe that the two measures would not only ensure adequate revenue to make up for octroi loss, but would also make more funds available for growth and development in areas under these municipal corporations.