Call to change Vadodara's octroi system

The trade and commerce community in Vadodara, dissatisfied with the operation of the octroi department of the Vadodara Municipal Corporation, has demanded for a change in the octroi system according to the specified guidelines.

The trade and industry community, while demanding the abolition of octroi from the seven municipal corporation area limits, has criticised the role of municipal officers in valuing the goods brought or sold by the traders or manufacturer in the cities where octroi is still levied.

Moreover, the business community is unclear on the future or taxation within municipal corporation limits, as neither the Gujarat government nor any municipal corporations have announced status of octroi while the Central government has already announced to implement the value added tax system from April 1, 2005.

Vadodara-based trade and commerce association Central Gujarat Chamber of Commerce (CGCC) and other affiliated trade associations recently organised a meet to discuss issues related to the octroi system.

Participants from various fields of industries also discussed the future course of action in case the state government continues the octroi system after the implementation of the VAT system.

"Our fight is not against the octroi rates at present but it is against its implementation by the officers. Business community is not satisfied with the over valuation of goods done by the municipal officers. They normally do not trust the bills or chalans produced by the trader or manufacturer," said P M Rathod, secretary, CGCC.