Chambers demand abolition of octroi

The chambers of commerce of Saurashtra and Kutch area have demanded the immediate abolition of octroi from the four municipalities in the region.

The leading merchant associations have also demanded the early introduction of Value Added Tax (VAT).

According to Utkarsh Shah, chairman of Gujarat chamber's Octroi Abolition Action Committee, said that the committee had earlier submitted a 36-point memorandum to the state government. "Of these, the government has taken action only on four issues," Shah said.

Though the state finance minister, Vajubhai Vala, had promised to abolish octroi, nothing has been done as yet, chambers allege.

"Former chief minister Keshubhai Patel had abolished octroi from 142 towns. At present, octroi is collected only in seven municipalities of the big cities. The state gets a revenue of Rs 1,000 crore per annum. But the taxable turnover of Gujarat is around Rs 275 lakh crore per year. As an alternative, the government should collect turnover tax," Shah added.