Differences in Maha govt over LBT ministerial panel

Maharashtra government today seemed to be divided over setting up of a ministerial committee on the Local Body Tax, with a senior Congress minister discounting the need of a separate panel to look into the traders' reservations on the issue.

"There is no need for a separate ministers committee on the issue. The Local Body Tax (LBT) Act was passed in the Legislature in 2009 and there was no opposition to it. It is only when elections are round the corner, problems are being created. Even when the VAT was introduced, there was opposition," the Congress minister told PTI today on the condition of anonymity.

He however, said that the party was open to discussions on streamlining the taxation.

"Congress is of the view that taxation should be streamlined. Discussions can be held on this front," the minister said.

Yesterday, the NCP had asked the State Chief Minister Prithviraj Chavan to set up a committee of ministers to study and address concerns raised by retail traders in the implementation of LBT.

A letter to this effect has been written by Deputy Chief Minister Ajit Pawar and state NCP chief Madhukar Pichad to Chavan.

LBT is in force in 19 municipal corporations in the state and was being implemented successfully. In Mumbai, the LBT will come into force from October 1, 2013.

Meanwhile, Chavan today appealed those opposing the tax to stop misleading people on the issue and said a decision on its implementation here would be taken in the State Legislature.

"As an alternative to the Octroi, the general body of the Brihanmumbai Municipal Corporation (BMC) agreed for the implementation of LBT. A budgetary provision in this regard was also made by the civic body. The traders by suddenly opposing the LBT have held the people for ransom," Chavan said in statement here.