NMMC gets ` 75- crore LBT grant from state govt for three months
The state government sanctioned a grant of Rs75.53 crore a month to Navi Mumbai Municipal Corporation (NMMC) in lieu of the discontinuation of Local Body Tax ( LBT) for the three months ending March 31.
The civic body had demanded the grant after the state discontinued LBT, which was a major source of income for NMMC.
The civic body said its excellent track record of collection of taxes over the years has helped it get the highest grant in the state. “Since NMMC’s tax collection system has been accountbased from the beginning, LBT being modified version of cess, the civic body’s tax collection was the highest among all other municipal corporations in the state,” said Umesh Wagh, deputy municipal commissioner (LBT),
He said, “Despite LBT being discontinued, the NMMC for five months paid attention to collection of arrears and other dues, ensuring a disciplined financial system. This resulted in collection of Rs100 crore in July, Rs80 crore in August, Rs68 crore in September, Rs50 crore in October and Rs70 crore in November.”
“We are confident of a collection of over Rs800 crore in the cur- rent financial year,” said Wagh.
Municipal commissioner Dinesh Waghmare said, “The grant is a recognition of our disciplined financial sytem in the corporation. It is discipline that has also earned us a high credit rating of AA+ stable from India Rating and Research.”
On August 1, 2015, the state discontinued LB T. While announcing the grant for the next three months, the state took into account all the details and announced a grant of Rs75.53 crore a month.
Since NMMC’s tax collection system has been account-based, LBT being modified version of cess, the civic body’s tax collection was the highest among all other municipal corporations in the state.
UMESH WAGH, deputy municipal commissioner (LBT)