By IANS
Ahmedabad : At the stroke of midnight Wednesday, octroi duty will stand abolished in areas under seven municipal corporations in Gujarat, which will mean a revenue loss of Rs.18 billion ($458 million) to the state exchequer.
Gujarat government has not decided on alternative sources of revenue that will make good the loss.
Ahmedabad Municipal Corporation, which is the largest of the seven corporations, will stand to lose Rs.4 billion a year. A seven-member committee formed to suggest alternative revenue sources has not submitted its report yet.
The abolition fulfils a poll promise of Bharatiya Janata Party during the 2002 elections.
The Narendra Modi government declared that the duty would be abolished on Nov 15.
Since elections have been announced for the state assembly, the government sought the Election Commission’s clearance for this move.
The commission, after obtaining a report from the government, gave its nod.
The abolition will affect revenues in Ahmedabad, Vadodara, Surat, Jamnagar, Rajkot, Bhavnagar and Junagadh municipal corporations.