Published On : Thu, Jul 30th, 2015

What in place of LBT? Rs 65 crore demand in cold storage!

Nagpur: While the declared date (August 1) for abolition of LBT across the state is just on the threshold to knock the door, the state government has not hinted till date as to what measures will replace the LBT. Besides, the government is silent up till now on the question of paying Rs 65 crore to NMC administration to compensate for LBT, as was demanded from Chief Minister by the NMC. The LBT department has received no communication so far from the state government in this regard.

The LBT was one of the major resources for revenue generation, and so far it has yielded Rs 116 crore to the NMC, including Rs 40-44 crore recovered through heavy imposition of penalty, just 10 fold. As on this date, developmental works are at stand still.
If LBT is abolished as committed, the department concerned in the NMC will have to launch its ‘search and seize operation’ once again, from August 1, as no option left.

On the other hand, the standing committee chairman Ramesh Shingare, ignoring the vital issue of fund-crunch for developmental works and payment of salaries to NMC employees, is spending liberally from NMC exchequer on appointing advisers for proposed projects and sanctioning only those subjects which are more creamy.

It is worth mentioning that the Cong-NCP led government had imposed LBT system on municipal coprorations, and as a result, the financial condition of NMC got weakened. Angered traders and citizens then changed the government and brought BJP into power. But if the BJP government abolishes LBT and brings in no option for revenue generation, then ‘God save the government!