This story is from April 26, 2007

Anxiety in AMC over octroi issue

Signs of withdrawal of the octroi hound Ahmedabad Municipal Corporation officials.
Anxiety in AMC over octroi issue
AHMEDABAD: As the Ahmedabad Municipal Corporation (AMC) awaits its turn to discuss the abolition of octroi and alternatives next week in Gandhinagar, signs of withdrawal of the octroi hound AMC officials.
Currently, AMC is trying to garner whatever it can, such as, clearing pending octroi cases of the last 20 years.
AMC has 34 lakh pending F-forms — a form that an octroi payee has to fill out at the checkpost when the self-assessed value of goods does not match the value assessed by the officials.
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In the last one year, AMC has managed to clear 86,738 cases, recovering Rs 1.69 crore. If cleared, the pending cases will fetch around Rs 20 crore for AMC.
“It is difficult to recover money from cases that the court has already penalised,” says octroi superintendent Ashwin Shah. That apart, AMC’s vigilance department garnered Rs 250 crore as penalty income last year.
Not that this can be an alternative to the Rs 700 crore of octroi that AMC earned in Ahmedabad last year.
AMC earns an average income of Rs 2 crore a day. Gautam said that AMC needs Rs 4,000 crore to sustain the existing projects under Jawaharlal Nehru National Urban Renewal Mission (JNNURM) and Rs 655 crore to complete works stated in the budget for the current year.
Even the income of professional tax, Rs 50 crore annually on an average which is now being collected by AMC on behalf of the state government is too low.
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