Exclude Mumbai from GST, says Shiv Sena

Just a day before the Goods and Services Tax Bill is to be taken up by the Lok Sabha with the consensus of all parties, the Shiv Sena has caused a flutter by demanding that Mumbai, the financial capital of the country, should be excluded from the new tax regime.

Speaking in the Maharashtra Mayor Council on Sunday, mayor Snehal Ambekar said that the GST bill would severely affect the revenues of the Brihanmumbai Municipal Corporation (BMC).

“The BMC implements several civic infrastructure projects and schemes with the help of direct revenues that are collected through various taxes. The GST will result in delays in getting grants from the government, which will further delay these projects. Considering its financial status in the country, Mumbai should be excluded from the GST bill,” said Ms Ambekar.

The mayor’s statement is seen as a sign of the Shiv Sena’s discontent over the GST tax system, which is expected to make a big dent in the municipal revenues. For the past 24 years, the Sena has been ruling the BMC, which is regarded as the party’s main source of funds. The BMC is the richest municipal corporation in the country, with a budget of '37,052 crore, which is bigger than that for some of the states.

The GST will replace the octroi system, which is the biggest source of revenue for the BMC.