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LBT is a tax which implemented in the manner it is implemented in other parts of Maharashtra, it will become a menace for traders, retailers resulting into high costs for consumers. Like most policies of the Government, this Act is designed to slowly but surely kill small business.
What is LBT?
LBT (Local Body Tax) is a replacement of Octroi, wherein each trader who has got an annual turnover more than Rs. 3,00,000/- will have to register with BMC. Also incase your sales are less than Rs.3,00,000/- per Year but you purchase goods more than Rs.5,000/- then you will have to register.
Without registration with LBT you will not be allowed to do business in City Limits, like in our case within Mumbai.
Like VAT you will have to give a declaration on your Invoice and also pay tax before 20th of a month.
The Implications of 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.
The LBT Officers can check any vehicle at any point in time, they can inspect your premises, they can verify your records for past 5 years. They can demand LBT amount at the same time. Only after paying the sum you can file an appeal. They can attach your properties.
The grounds for Opposition
People will wonder that it is similar to VAT and most things are applicable under VAT Also, then what’s the difference? –
Exactly that is the point raised by traders if it is similar then why have two different mechanisms. Let government come out with a way to reduce paperwork and burden on traders.
The current laws under which traders are supposed to maintain records.
Value Added Tax
Central Sales Tax
Shop & Establishment Act
Different Licences to Stock Goods like PVC, Plastic etc.
One can understand how difficult it is to manage documents/records under so many Acts/Taxes and the cost of doing business is growing indefinitely. As can be seen it will kill small business.
At the time of introduction of VAT in 2005 government had promised that Octroi would be removed and there will not be any additional tax burden in lieu of the same and now government is going back.
Also this is going to nothing else but increase corruption in the system in names of Law Compliance.
Government is aware about it but for them corruption is nothing else but a source of revenue for the ministers.
Today Government applied Section 144 in Lohar Chawl, under which not more than 5 people can gather. They are treating traders who provide maximum revenue to Mumbai BMC and Maharashtra Government as thugs and street side goondas. They want to deprive traders their basic rights to protest.Lbt will lead to corruption and inflation....kill livelyhood of lacs of people....this should be taken on full state level....all the traders should stop giving any payout of any kind to all...like their supplier,transporters,bankers,salaries,wages,other bills in the wake of agitation and go for mass hunger strike....media will come all its way to support becoz after that it would be crisis of comman man as the whole system would be on verge of collapse..It is heard that some Association is planning Rail Roco Andolan on Monday . At Churchgate ,Marinelines ,
Charni road Grantroad .
The retailers association has also agreed for Bandh from this Monday.
The FAM has decided that if the government doesn't listen to us we will not pay the VAT to the state for next 3 months. This will lead to depleting funds in government bank account and this will make them realise our cry.
The government has also warned all the media personal not to cover the strike. Hence we should be our own media. Broadcast on BB, Face book, Twiter, etc. Upload videos, images, articles so that everyone in this world can hear our cry.
Kindly pass this message to everyone