Nagpur: The
Nagpur Municipal Corporation (NMC) is likely to generate 24-25 crore revenue per annum by levying
local body tax (LBT) on liquor. State government has brought back LBT on
liquor across Maharashtra and issued a notification to this effect on August 2. So far, the tax was only applicable to firms with annual turnover of 50 crore or more. BJP, while in the opposition, was opposed to the LBT terming it impractical.
A LBT department official told TOI the move would give a boost to civic revenues. The Maharashtra urban development department has proposed 10% LBT on sale of liquor. Objections and suggestions have been invited on e-mail at sudhakar.bobade@nic.in or by SMS on 9820527737. There are 308 country liquor shops and 753 bars and 116 wine shops in municipal limits. Earlier, NMC used to generate around 22 crore per annum via LBT on liquor sales.
There are 18 wholesale shops of foreign liquor and 17 wholesale licences of country liquor that may also come under the ambit of LBT.
Liquor traders slammed the decision when GST is set to be rolled out. “Calculation of LBT is complicated and time consuming,” said a wine shop owner. “BJP had criticised LBT as impractical, complicated and tedious. It eventually scrapped the tax. Now, there is no need to reintroduce it,” added another trader.
“Once GST comes into force, LBT will become redundant and will not be implemented,” said a shop owner.