Maharashtra Govt warns traders over local body tax stir

Chief Secretary Jayanth Kumar Banthia said a time should not come where the govt is forced to invoke ESMA against the traders for shutting down their shops

Maharashtra Government today warned traders it would invoke Essential Services Maintenance Act (ESMA) against them if they continue to resort to bandh to protest against the local body tax (LBT).

Chief Secretary Jayanth Kumar Banthia did some plain speaking with a delegation of trader associations, who met him to discuss and resolve the issue of LBT, a tax traders would have to pay to the local civic body on goods they bring to the city for trading.

"A time should not come where the Government is forced to invoke ESMA against the traders for shutting down their shops and causing inconvenience to the people," Banthia said during the meeting at Mantralaya (secretariat).

Traders, which have described LBT as a "black law" and demanded its roll-back, appeared in a conciliatory mood. They expressed reservations over paying the account-based tax to the municipal corporations, and said instead the state Sales Tax Department should be authorised to collect the levy.

Banthia asked the traders to submit in writing their objections to the LBT, which replaces octroi.

The top bureaucrat asked the Commissioners of the municipal corporations, where the LBT has come into force, to produce data on the impact of the levy on their revenues. Some of these Civic Commissioners were present at the meeting.

LBT seeks to speed up movement of goods and stresses on their self-declaration by traders who will have to maintain separate account. Traders have been resorting to frequent bandh to protest against the new tax regime.