May 16, 2014

Maharashtra government may scrap Local Body Tax - Stock Market Pulse

Maharashtra government might opt to scrap Local Body Tax

Maharashtra Local Body TaxLearning from the recent defeat in the Lok Sabha elections, it appears that the Maharashtra government has recognized that it can’t afford to keep traders dejected, as the assembly election are nearing. Keeping this in mind, Maharashtra government is now thinking of getting rid of the Local Body Tax headache. The government is reportedly thinking on the lines of scalping the Local Body Tax, which is already in force across the state except in Mumbai.

To compensate the loss in state exchequer, Maharashtra government may consider an increase in Value Added Tax (VAT). It is noteworthy that Local Body Tax was imposed on the state traders in a phased manner starting 2010. The tax that began with tier-III cities was imposed by scraping octroi. Last year the Local Body Tax was imposed on tier-II and tier-I cities as well, except the State Capital.

This tax has triggered protest from the traders in the state, who pinned that the new tax could be an addition to the harassment by the officials. Traders also thought that with VAT being under implementation, Local Body Tax was an additional burden.

Keeping in mind the upcoming assembly elections, the government has proposed scraPping of Local Body Tax, is likely to be formulated said the sources. As they say, elections change it all.

Tags – Local Body Tax, VAT hike LBT, Maharashtra hike vat lbt

Maharashtra government may scrap Local Body Tax

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