NAGPUR: While the
state government has indicated it was not possible for it to abolish the local body tax (
LBT) until the goods and
services tax (GST) was introduced, Gadkari claimed the party’s promise to do away with the hated tax would be fulfilled within a month. “Today, I had a discussion with chief minister
Devendra Fadnavis and he told me the government had devised an alternative. However, I will not disclose it as it is the prerogative of the CM,” Gadkari said.
Chavan, however, maintained it was not possible to abolish LBT as no other tax or surcharge would generate equivalent amount of revenue. He challenged BJP to fulfill its promise on abolishing LBT.
BJP had explored the option of surcharge on
value added tax (VAT) but junked it as the revenue earned through this surcharge would not compensate for LBT. When contacted, Fadnavis confirmed Gadkari’s assertion. “The government has started the process of finding an alternative to LBT,” he told TOI.