Difference between OCTROI and LBT

Octroi was collected

on every item brought into the city for sale or consumption

LBT will be applicable

only to traders who are direct importers. The trader can claim exemption from LBT if the item is to be exported

Octroi was to be paid

at the city’s octroi check-posts. LBT is levied through self-declaration, which means every trader will have to declare the worth of the goods being imported into the city

Amount of tax collected

through octroi would get deposited into the civic body’s accounts on a daily basis. Under LBT, the traders can pay on a monthly basis