Truckers' strike takes toll on octroi collection in Gujarat

Even as the indefinite strike by truckers against imposition of service tax entered the third day on Monday, municipal corporations in the state appear to be heading for trouble as octroi collection, the major source of income for the civic bodies, is taking a beating as a result of the strike.

Collection of octroi has fallen by around 80 per cent in the cities of Ahmedabad and Surat, while octroi collection has almost become negligible in Vadodara and the civic bodies have been losing lakhs of rupees of revenue everyday.

Meanwhile, traders, in a bid to ensure flow of raw materials, have begun resorting to using smaller vehicles such as tempos and pickup rickshaws to bring goods into the city.

In fact, some traders have also begun using private vehicles like cars to ferry goods into city limits even as the octroi department has stepped up its vigil against such offenders.

"We have an average daily income of between Rs 1.45 crore and Rs 1.50 crore. That has come down to around Rs 28 lakh per day, a loss of over Rs one crore a day," said A M Behlim, octroi superintendent, Ahmedabad Municipal Corporation (AMC).

From Monday, movement of goods into the city through smaller vehicles like pick-up rickshaws and small tempos has increased, which has resulted in an octroi revenue of around Rs 28 lakh, he said.

"Yes. some people will try and ferry goods into the city using private vehicles, but our teams are being extra vigilant," he said.

Revenue generated by octroi duty is the major source of income for the Surat Municipal Corporation, but transporters' stir is causing heavy losses to the corporation.

Jatin Desai, in-charge octroi superintendent, said, " The average octroi income of SMC is Rs 90 lakh per day. The strike began on Saturday, but there was no impact of it on the octroi income on the first day as many trucks and other vehicles brought goods into the city."

"The average octroi income on Sundays is Rs 50 lakh to 55 lakh, but due to the strike it came down to 35 lakh, which means a reduction of Rs 15-20 lakh. Due to the strike, all trucks are off the roads, but various goods are being brought in three-wheeler tempos, six-seater rickshaws, private buses and ST buses. Instead of the average Rs 90 lakh, we expect the daily octroi income to come down to Rs 20 lakh, a loss of Rs 70 lakh each day. The longer the strike continues, the higher will be octroi income losses," Desai said.

Pradeepsinh Jhala, deputy commissioner (special), SMC, and head octroi department, said, "I do not have the exact figures of the revenue loss by way of fall in octroi income, but certainly SMC is losing a lot of money due to the strike. Some people are using private cars and other vehicles to bring goods into the city. Looking at the possibility of octroi duty evasion, I have directed the staff at all octroi check-posts to remain alert and conduct checks to ensure that there is no octroi evasion," Jhala added.

For the financial year 2004-05, the Surat Municipal Corporation has set an octroi income target of Rs 320 crore.

There are 27 octroi check posts in Vadodara city with an average revenue of Rs 40-45 lakh per day to the Vadodara Municipal Corporation.

The collection during the last three days has been almost negligible compared with the average collection during normal days. The current octroi revenue is coming from the transportation of the essential goods which has been allowed by the truckers, VMC officials said.

VMC octroi department is keeping an eye on small vehicles being used to evade octroi.