NASHIK: The revenue of the Nashik Municipal Corporation (NMC) through the local body tax (LBT) has declined by 13.46% to Rs 601.88 crore in the current fiscal year as compared to the revenue collected during the previous fiscal due to recession in industrial and real estate sectors and decline in the LBT rates of some of the commodities.
After the directives from the state government, the new tax system, LBT, was introduced in the limits of the NMC from May 22 last year, thereby replacing octroi, the major source of income of the civic body through which it earned close to 62% of the total revenue. Even though the LBT has now become the major source of income of the NMC, it is failed to fetch adequate revenue.
The revenue through LBT has declined by 13.46% to Rs 601.88 crore in 2013-14, against last year's collection of Rs 695.51 crore through octroi. Of the total revenue collected, Rs 112 crore was through octroi (collected during the period from April 1 to May 21, 2013).
According to sources, the decline is largely because of the recession in the industrial and the real estate sector. The industrial growth has been affected to some extent due to recession, even as the real estate sector is facing recession. There were hardly any new real estate projects launched in the city during the last year. The revenue through LBT from industries has declined by Rs 54 crore to Rs 286 crore in the current fiscal, against Rs 340 crore during financial year 2012-13. The octroi rates, which were around 4% for cement and electric items, have been reduced to 3% in LBT. Earlier, octroi was 3% for export oriented units (EOU), which has been completely exempted in the LBT. This has also somehow affected the revenue collections.
When contacted, deputy municipal commissioner (LBT) of the NMC Haribhau Phadol said, "The industrial sector is a major contributor in the revenue of the NMC. But recession in this sector is a major reason for decline in revenue. Moreover, the LBT rates of some commodities were also reduced as compared to octroi rates. This has affected the revenue to some extent. But we are hoping to collect more revenue during the next financial year, 2014-15.