LBT or Local Body Tax is a brand new bane the government
wishes to impose on us Business folk.
What is it?
The LBT replaces the current Octroi, where each trader with
an annual turnover of over three lakh must register with the BMC to be allowed
to conduct business in the City of Mumbai.
Even if your turnover does not exceed three lakh if your purchases
are over 5000 then you must register with the BMC.
Without registering with the BMC you will not be allowed to
conduct Business within Mumbai.
Just like VAT you will need to declare all your invoices and
clear this every 20th of the month.
The Problems with LBT:
The business in Maharashtra is slowly going to other states
and with high rates of LBT it will go out at a much higher pace.
LBT officers can check and stop any vehicle at any point in
time, they can inspect your premises, they can verify your records from over a
decade ago and can demand you to produce bills for the same.
The worst part here is, you are forced to pay the entire LBT
amount to the officer on the spot and can only file an appeal later in court.
With the amount of corruption and bureaucracy we face as a
nation and business people, do we really want to allow the corrupt BMC to take
a massive cut out of our livelihood now? It is great paying tax, however with
Indian bureaucrats it never is about paying tax, it’s about paying these
officials bribes and the sheer amount of corruption and unnecessary policing that
LBT will bring to the table.
At the time of introduction of VAT in 2005 the Government
promised that Octroi would be removed and there will not be any additional tax
burden in lieu of the same.
They did hold up to their promise of removing the Octroi,
but we didn’t ask for them to come into our offices and loot us?
This petition closed over 1 year ago
To remove LBT and unnecessary policing by the BMC