MUMBAI, JUNE 14: The State Cabinet today decided to allow the `A' category municipal bodies in the State to collect `import cess' instead of octroi in their jurisdiction."The cess will be recovered on the lines of Navi Mumbai where the municipal corporation collects the cess at source," informed Chief Minister Vilasrao Deshmukh.Governor Dr P C Alexander will be requested to issue an ordinance as per the provisions of the Maharashtra Municipal Bodies Act, 1965, he said.On May 1, 2000, the State Government had abolished octroi duty in the jurisdiction of the `A' category municipal bodies and instead given them grant. As a result, as many as Rs 260 crore were given to 18 municipal bodies in the State.The collection of the new tax will start within 3 to 4 months. Till then, the Government will formulate the rules and regulations for the new tax and will also train the municipal employees for collection of the new tax, the Chief Minister said.The new system is expected to bring in Rs 208 crore, he added. Even the traders are happy with the tax system introduced in Navi Mumbai, while they have complained against the decisions of Amravati and Nanded municipal bodies to appoint a private contractor for Octroi collection, he pointed out. "The new cess system, which we are going to introduce, will be acceptable to the municipal bodies as well as the traders," Deshmukh said.
