Chandigarh, December 3
The Punjab Government has asked the cantonment boards at Jalandhar and Ferozepur to stop collecting octroi within their respective jurisdiction. The government has also offered to compensate the two boards for the loss incurred from abolishing octroi.
The Punjab Government has asked the cantonment boards at Jalandhar and Ferozepur to stop collecting octroi within their respective jurisdiction. The government has also offered to compensate the two boards for the loss incurred from abolishing octroi.
The draft notification for stopping octroi collection by the Cantonment Board, Jalandhar, has been approved while the draft notification for stopping collection of octroi in Ferozepur Cantonment is under examination.
Jalandhar and Ferozepur are among the nine cantonments in the country that are still collecting octroi from the public. There are 63 cantonments across the country.
Octroi is a local tax imposed on the movement of goods to generate revenue. Under the provisions of Section 66 of the Cantonments Act 2006, cantonment boards are empowered to impose any tax in any municipality in the State in which the cantonment is situated. At the time when the octroi was imposed in cantonments, municipalities of the state were empowered to impose the same.
Whereas state governments are financially compensating the municipalities in one form or the other, no compensation is being paid to cantonment boards in lieu of abolition of octroi. The collection of octroi by a cantonment board can be stopped or suspended by the board in case the state government concerned decides to compensate or reimburse the revenue of the board on account of octroi.
Octroi is a local tax imposed on the movement of goods to generate revenue
Jalandhar and Ferozepur are among the nine cantonments in the country that continue to collect octroi from the public
The collection, however, can be stopped or suspended in case the state government concerned compensates the cantonments
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