Published On : Thu, Aug 4th, 2016

State Govt mulls imposing LBT on liquor trade in city


Representational pic

Maharashtra Government has decided to impose Local Body Tax (LBT) on liquor trade in the city at a time when the demand to enforce prohibition in entire state is being vociferously raised. However, the State Government move to levy LBT on liquor business seems to have aimed at boosting revenue of local civic bodies. A GR in this connection was received by Nagpur Municipal Corporation and directed it to seek suggestions and objections from stake-holders.

Based on the suggestions and objections, LBT will be imposed on the liquor business that may lead to hike in prices of liquor.

The move may also witness bootleggers as well as petty dealers smuggling cheap and inferior liquor from neighbouring Madhya Pradesh.

The financial condition of NMC is pathetic following abolishing of Octroi as well as partial scrapping of Local Body Tax. The State Government provides assistance to NMC in lieu of abolished LBT. However, the assistance proves inadequate forcing the civic body to hike rates of Water Tax, Property Tax and market rents for its shops. The economic situation is so poor that salaries of employees are delayed by 1-2 months. Development works have come to standstill.

The move to impose LBT on liquor is being seen as boosting revenue of civic bodies.