CM rules out LBT rollback
Chief minister Prithviraj Chavan on Monday said that it was impossible to withdraw Local Body Tax (LBT) at the current stage as it is being imposed in many municipal corporations.
Mr Chavan said that the implementation of LBT in Mumbai would take a few more months, as the Mumbai Municipal Corporation Act needs to be amended for the same.
Addressing a press conference at Vidhan Bhavan, the chief minister said, “We can’t withdraw the new tax system at any cost. Only a few people are trying to mislead the majority. It has been imposed in several municipal corporations except the few. We are at an advanced stage, therefore it’s impossible to withdraw LBT now,” said Mr Chavan.
He added that the government had done its study before taking the decision on LBT. “We are open to discussions, but the demand to withdraw LBT is out of question,” he said.
He said, among a few suggestions, the traders have urged to increase the value added tax (VAT) by one per cent, instead of imposing LBT. However, it is impractical, he said.
“The LBT can be imposed only in cities, while VAT was levied in rural parts also, and increasing the VAT will burden the rural population unnecessarily,” he said. Around 15 lakh traders and wholesalers from the capital city went on an indefinite strike from Monday, protesting against the LBT. The retailers, on the other hand, have announced to go on strike from Wednesday. He said that the implementation of LBT in Mumbai would take some more time. “To impose the LBT in the city, we need to amend the Mumbai Municipal Corporation Act first. The government will move the amendment bill in the coming Legislative monsoon session,” Mr Chavan said.
Meanwhile, the Fede-ration of Retail Traders Welfare Association (FRTWA) said that its indefinite bandh call was a total success as nearly one lakh retail establishments across the city, remained shut in response.
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