The Chamber of Small Industry Associations (Cosia) today asked the Maharashtra government to look into the local body tax issue as it is hitting the sector.
The government is "adamant" on LBT (Local Body Tax) issue and is not resolving the long-pending issue, COSIA founder President M R Khambete and Vice-President (Maharashtra Chapter) Sandeep Parikh said in a joint press conference here.
Cosia, which represents small and medium enterprises, also accused the government of looking the other way when the industry is battling many problems.
The body said this was resulting in business units preferring other states like neighbouring Gujarat over Maharashtra.
LBT is the tax imposed by the local civic bodies on the entry of goods into a local area for consumption, use or sale therein. In Maharashtra, LBT replaced the octroi duty in civic bodies except Mumbai since 2010 in phases.
The account-based LBT, which replaces octroi, has been levied in 25 of the 26 municipal corporations in the state.
Traders across Maharashtra are seeking rollback of LBT. Even NCP, the alliance partner of Congress, has demanded scrapping of the tax. However, Chief Minister Prithviraj Chavan has said corporations can decide whether they want LBT.
"We will undertake an all-out campaign against Congress over LBT and octroi," Khambete said.
"The Congress high command had already directed the chief minister to resolve the issue on priority but nothing has happened so far," Khambete claimed.
Parikh said that neither the industry nor trade was opposed to paying taxes.
"All that we are saying is that the cure of LBT is worse than the Octroi disease. LBT has brought around non- competitiveness amongst neighbouring municipal corporations.
"LBT rules are directly lifted from octroi and VAT rules and the resultant rules are most confusing. The multiple rates as per classification of goods will create enormous confusion and corruption at the time of assessment," he said.
"...There is zero per cent growth in Industries in Maharashtra. Needless to say, that the LBT rules are going to bring in corruption in a big way," he added.
