UP abolishes tehbazari on truck operators

To the relief of truck and handcart operators and other small-scale traders of Uttar Pradesh, the state government has decided to abolish "tehbazari", the municipal tax on loading and unloading of goods vehicles on pavements, and petty roadside shopkeepers.

According to a government order issued by the Urban Development Secretary Amal Kumar Verma last week, all urban local bodies of the state have been asked to abolish tehbazari.

The order said the system created difficulties in the smooth movement of traffic and created many other difficulties.

While the tax has been revoked in major townships of the state, municipal authorities of smaller cities like Mainpuri and Etawah are yet to implement this order which could set the local municipalities back by Rs 30-40 lakh in revenue.

In Agra alone, the Municipal Corporation has estimated a loss of at least Rs 1.25 crore in revenue.

Municipal Corporation sources claimed that the municipalities were already going under heavy losses due to the abolition of toll tax in the state and now, with the tehbazari too being lifted, the local governing bodies shall have to seek the aid of the state government to arrive at a break even point.

According to the sources, earlier, the state government had raised the state trade tax by 2.5 per cent to help the municipalities tide over the losses incurred due to the lifting of toll tax and this time too, a similar move was expected from the state government.

Agra Municipal Commissioner Shyam Singh Yadav said he had issued instructions to the "tehbazari" contractor authorized by the Agra Municipal Corporation (AMC) to wind up his operation and settle his accounts with the AMC.

He said the tehbazari operations had been put to an end immediately after the receipt of the government order and the AMC shall take all necessary steps to regain its lost revenue by increasing its sources of income.