Friday, July 31, 2009

Civic bodies to get octroi dues

BY A GT REPORTER

PANJIM: Giving in to persistent demands by vociferous BJP benches, Urban Development Minister Joaquim Alemao has promised to release a sum of Rs 17 crore due to all Municipalities in the state.
This sum has been pending under two heads -- Rs 14 crore is 0.75% VAT to Municipalities in lieu of octroi while Rs 3 crores is the disbursal of fund earmarked to Municipalities under budgetary provision.
However, Joaquim has remained non-committal on the additional, arrears of Rs 24.85 crore due to Municipalities pending over a period of five years as pointed out by opposition leader Manohar Parrikar.
He, however, promised to move the file to the finance department for clearing these arrears.
Earlier, Canacona MLA Vijay Pai Khot raised the matter through a starred qand gave the break up of the rightful demands for funds to the Municipalities.
In lieu of octroi, the Municipalities, Panchayats and Zilla Panchayats are entitled to 2% proceeds of VAT. The detailed break-up, as announced the Urban Development Minister, is: 0.75% to panchayats, 0.75% to Municipalities and 0.5% to Zilla Panchayats.
Khot said of the total VAT collected by the government, 0.75% amounting to Rs 14 crores due to Municipalities has not yet been disbursed.
In his reply, the Urban Development Minister shifted the election code of conduct for the inability to disburse the grants of Rs 3 crore on time. This led Parrikar to demand the propriety of writing to the Election Commissioner when the grants were already earmarked for disbursal.
Of other pending arrears amounting to Rs 24.85 crore, Parrikar felt they can take care of the additional burden of Rs 10 crore on Municipalities imposed on account of the recommendations of the VIth Pay Commission.
As far as octroi is concerned, Alemao blamed the Sales Tax Department quoting their inability to provide him with figures of taxes collected from petrol pumps.
To this, Parrikar said, "The grant of octroi can't be arbitrary. You have to give it proportionately. In case data was unavailable, you could have asked your department to collect it from the petrol pumps."
At this stage, Fatorda MLA Damodar Naik pointed out to the sum of Rs 1 crore, 25 lakhs given to Margao Municipality despite the existence of about 11 petrol pumps within Margao city limits. However, Alemao was quick to clarify that the aforesaid sum of Rs 1 crore was by way of grants.