Once the goods and services tax (GST) is in place, a substantial corpus of funds could provide an alternative to the flow of revenue to municipal corporations and the octroi would be abolished in the state.

Replying to the motion moved by MLCs Anil Bhosale, Hemant Takle and Jayantrao Jadhav as regards misappropriation of funds by the octroi department employees of Bruhanmumbai Municipal Corporation, Chavan said an FIR had already been lodged against employees Ravindra Todulkar (chief clerk), Ramesh Aarote (deputy tax assessor) and Rupkumar Dusane (deputy vigilance officer). Chavan assured that an inquiry by the anti-corruption bureau (ACB) will also be conducted against these officials.

Bhosale and Takle said that there were complaints by the public representatives that these octroi officials had purchased properties worth crores of rupees at Alibaug and Raigad but neither the corporation nor the state government initiated any action against them.

Chavan said that "We are committed to abolish octroi once the GST is introduced. It has already been abolished in municipal councils. The process of abolishing it in municipal corporations is on. The experience of corporations where octroi has been replaced with local body taxes (LBT) was encouraging," Chavan told the Upper House.

Slamming the BJP-ruled states for obstructing the process of reaching a consensus on the UPA government's proposal on goods and services tax, the chief minister said that the opposition owed an explanation to the people.

Recently, an experts' panel appointed by the central government had asked the government to expedite octroi abolition for faster economic growth in the state.

Source: Times of India, India,  dated 18/12/2011