HYDERABAD: Octroi is here to stay. Contrary to hopes that the practice could well be on its way out soon, indications are that until the State Government and the Secunderabad Cantonment Board (SCB) reach a consensus, octroi could continue to be a political football.

In spite of widespread resentment over its collection, SCB Chief Executive Officer T. Arockianathan said on Thursday that the board would persist with octroi since its abolishment would only lead to a "loss of revenue." This is after the octroi and the toll tax tender process for 2006-2007 saw contracts for both soaring to reach a cumulative of Rs. 7.4 crores.

"If at all we have to think about abolishing octroi, it will be after the State Government agrees to pay us compensation for the same, as it does for the municipal corporation and other municipalities," Mr. Arockianathan told The Hindu .

SCB's current stance is in stark contrast with its earlier standpoint. With the State Government abolishing the practice in its limits way back in 1963 and other cantonments in Uttar Pradesh and Maharashtra doing the same, SCB in 1999 recommended to the Centre to follow suit, when R.S. Cheema was the CEO. In 2001, the then CEO Ajay Kumar announced that octroi would go once toll tax was increased and the returns were substantial. Both proposals remained birds without wings.

On Wednesday, contractor K. Sreedhar Reddy toppled six other bidders to bag the rights. While Mr. Reddy got control over the 11 octroi gates at a whopping Rs. 5.3 crores, his toll tax rights were priced at Rs. 2.1 crores. This is in contrast with Rs. 3.7 crores for octroi and Rs. 1.6 crores for toll tax in 2005-2006.

The contract rates over the years have been on a constant upward. In 2003-04, toll tax rights went for Rs. 89 lakhs while octroi rights were priced Rs. 2.07 crores. This was against a toll tax contract of Rs. 41 lakhs and octroi price of Rs. 1.71 crores in 2002-03.

Demand for abolishment of octroi in SCB was echoing over the years in the Parliament as well, with politicians cutting across party lines to voice their dissent. SCB, under the Cantonments Act of 1924, charges Octroi and toll tax on items including food grains, edible products, cement, wood, iron and steel. However, the public has been alleging large-scale fleecing in the name of octroi at the collection gates.

Printer friendly page  
Send this article to Friends by E-Mail