The Hindu : National : EC clears decision to abolish octroi

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Thursday, Oct 25, 2007
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EC clears decision to abolish octroi

Manas Dasgupta

GANDHINAGAR: The Central Election Commission has cleared its earlier decision to abolish octroi from all the seven municipal corporation areas in Gujarat from November 15.

The Commission’s clearance was communicated to the State Chief Electoral officer here on Wednesday and the announcement was greeted both by political parties and the trading community.

Though the decision was taken much earlier than the model code of conduct came into force on October 10, its implementation was doubtful because it was construed to be a device of the ruling party to attract the urban voters in the Assembly elections, scheduled for December. Many political parties, during their meetings with the full team of the Election Commission here last week, urged it to take a re-look at the government’s decision to abolish octroi from November 15, the first auspicious day after Diwali when the trading activities resume in the State after a five-day vacation.

At the behest of the State Election Commission, the urban development department sought the EC’s clearance in writing on October 18. The decision to issue the notification for the abolition of octroi was taken by the State Cabinet on September 12 after the Assembly adopted a resolution to this effect during the monsoon session in August.

The Modi government had taken an “in principle” decision to abolish octroi after a prolonged agitation by the trading communities who demanded its abolition after the value added tax was introduced in the last financial year. Abolition of octroi was promised by the BJP in its election manifesto in 1998.

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