<div>Traders in Maharashtra have rejected the State Government's proposal to substitute the controversial LBT (local body tax) with a new levy.<br /><br />In a joint release issued late last night, President of Federation of Associations of Maharashtra (FAM) Mohan Gurnani and Vice-President of Thane Small Scale Industry Association (TSSIA) Sandeep Parikh said they are opposed to the Government proposal of "new tax" in lieu of LBT.<br /><br />They said representatives of industry and trade from all the 26 municipal corporations in the State met with Government officials here yesterday.<br /><br />At the meeting, Sudhir Srivastava, Additional Secretary (Finance) and Nitin Kareer, Commissioner, Sales Tax explained the proposed new tax.<br /><br />The industry bodies deliberated the Government's proposal at length. Post-discussion, representatives from all the 26 corporations decided to reject the new tax proposal, the release said.<br /><br />The new levy lacks clarity and has multiple rates. Its implementation may lead to cascading effect, it said.<br /><br />Gurnani and Parikh said the Government should accept the traders' demand to subsume LBT into VAT (value-added tax).<br /><br />LBT is a tax imposed by local municipal corporations on the entry of goods into a "local area for consumption, use or sale". It is supposed to replace octroi.<br /><br />(PTI)</div>
