Govt move curtailing octroi relief likely to hit BMC
The Bhubaneswar Municipal Corporation (BMC) is likely to face serious financial crisis if the state government’s decision to curtail octroi compensation grant is implemented.
Octroi is a local tax levied on entry of varieties of goods to the city. The state government has been paying octroi compensation to all Urban Local Bodies (ULBs) after introduction of Odisha Entry Tax, 1999. Since octroi collection was abolished the same year, the government compensates the ULBs for the same.
Official sources said the BMC was getting around Rs 75 crore as octroi compensation annually. In 2015-16, it will get around Rs 20 crore less
Sambad e-Paper 29/09/2015 : http://sambadepaper.com/epapermain.aspx