IT associations support rally against Octroi

MUMBAI

DECEMBER 11, 2006

IT associations, across Maharashtra including Mumbai-based TAIT and Pune-based CMDA wholeheartedly supported the bandh called by the Maharashtra Chamber of Commerce, Industry and Agriculture, the Federation of Traders Association of Pune, the Shetkari Sanghatna and the Tempo-Truck Transport Association, in support of abolishing octroi from Maharashtra.

While the IT traders in Pune observed a complete bandh, business in Mumbai moved at a slow pace with only a few dealers opening shops. Some parts of Mumbai's trading hub observed a partial bandh.

Extending its support for the bandh, Umang Mehta, Spokesperson, TAIT, Mumbai said, "We support all the trade associations wholeheartedly who are protesting against Octroi. We are very positive that such consistent efforts of the octroi abolition committee will surely succeed soon."

Meanwhile, streets in Pune wore a deserted look with entire wholesale market, including garments shops as well as delivery vehicles observing a complete bandh. All members of CMDA too kept their shops, offices and service centers closed. "We are very much committed in abolishing Octroi. We would support this cause and if need arises would go on indefinite strike," said Brijen Shah, President, CMDA Pune.

To show its support, almost all CMDA Pune members gathered at the Sambhaji Garden and decided that if the octroi is not abolished then an indefinite strike would be called. Even the upcoming elections would be boycotted. Shital Nahar, Secretary, CMDA said, "Only the retail outlets and hotels of non-CMDA associations were open. The trade associations are planning to get them also to support the octroi abolishment movement."

The associations have been protesting against octroi since early January this year. Later, in the day, a delegation of the associations met the Chief Minister, Vilasrao Deshmukh and presented him with a memorandum asking him to abolish octroi. The CM has assured them that the matter will be taken up with the respective tax officials on December 14, 2006 and a concrete decision should come off it.

The memorandum suggests few recommendations, which includes replacement of octroi with a cess on VAT or a local tax.

The approximate revenue from Octroi is around Rs 5500 crore out which Pune contributes around Rs 450 crore and Mumbai adds Rs 2500 crore to the municipal treasury.