Nagpur industry body battles Local Body Tax | SupportBiz

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Nagpur industry body battles Local Body Tax

The Nagpur Chamber of Commence (NCC) believes that the Maharashtra government’s decision to implement local body tax (LBT) in the city would cause additional administrative hardships to industry in the Vidarbha region of the state.

In a chat with, Kamlesh P. Shah, past president of the Chamber of Commerce said a primary concern over LBT relates to the requirement of maintaining records for a period of ten years, something that the traders and owners of small and medium enterprises (SMEs) are not equipped to handle.

“We have been unable to force the government to rethink on the LBT, though we did manage to overturn some of the more draconian of rules like provision for stopping vehicles arbitrarily as well as excessive penalties. Even the LBT rates were reduced,” Shah says.

“Sometimes it appears as though the government in Mumbai does not care for the business community in Vidarbha region because we do not hold any great electoral value to any political outfit,” he said.

The imposition of LBT in Nagpur came about following the announcement by Maharashtra Chief Minister Prithviraj Chavan in the state legislature in March, though the law for the purpose was passed in 2009.  The LBT replaced the octroi that was levied on goods entering municipal area for consumption locally.  

Giving details about the chamber, Shah said the NCC has been around for 81 years, having been started by India’s first President Dr. Rajendra Prasad as part of an effort to organize industry in the Vidarbha region. It currently boasted 1000 members including 25 associations and SMEs.

“Today, the NCC is a platform that facilitates interaction between officials of the state and central administration and the business community. Additionally, the chamber also organizes workshops to familiarize members of new policies and associated developments.