MUMBAI: The local body tax (LBT) will be implemented in Bhiwandi and Malegaon from Wednesday. The Bombay high court on Tuesday declined to extend the stay on the implementation of the local body tax (LBT) in these two areas.
A vacation division bench of Justice A H Joshi and Justice M L Tahaliyani dismissed the applications of two corporators and pointed out that the eight-week stay given by the HC on March 26, ended on Tuesday.
The corporators' advocates sought more time as the civic bodies do not have the infrastructure to implement LBT.
"Traders have to register and file returns, while the civic body must have the machinery to assess returns," argued advocate
Shailesh Shah, appearing for the Malegaon corporator. Counsel S U Kamdar and advocate Shardul Singh, appearing for the Bhiwandi corporator, said there would be "no harm" if the stay is continued for 15 days. While the Malegaon Municipal Corporation said it is ready to implement LBT, the Bhiwandi civic body said it is not.
But the bench said as the petition is pending and a plea for stay was rejected by the HC earlier, it would be inappropriate to extend the stay. They also said that it is within the legislative competence of the state to impose LBT.
Meanwhile, the Bhiwandi civic body is preparing to introduce LBT. "We have appointed 50 staff members," said Achyut Hange, Bhiwandi civic chief. But upset traders are planning a protest. "The LBT will increase corruption as it would be difficult to maintain records of all transactions," said Amul Punyarthi, who runs a medical shop. "It appears that the law relating to the LBT enters the field to substitute taxation erstwhile in existence. Therefore, such taxation replaces the existing body of taxation," the bench said.
The government lawyer informed the court that a notification was issued on May 20, fixing the tariff and it will be published in the official gazette by May 22 and also put up on its website.