₹3,000 Crore LBT Dues Pending; Recovery Challenge For Pune and Pimpri-Chinchwad Municipal Corporations
₹3,000 Crore LBT Dues Pending; Recovery Challenge For Pune and Pimpri-Chinchwad Municipal Corporations
Pune/Pimpri-Chinchwad: The Maharashtra government has directed municipal corporations across the state to permanently shut down their Local Body Tax (LBT) departments by April 30, 2025. This decision has raised concerns over the pending LBT dues, amounting to ₹3,000 crore, owed by traders and businesses in Pune and Pimpri-Chinchwad.
As per officials, traders in Pune owe around ₹200 crore in LBT dues, while those in Pimpri-Chinchwad have outstanding payments totaling ₹2,800 crore. The implementation of the Goods and Services Tax (GST) on July 1, 2017, led to the abolition of LBT. However, significant dues remain unpaid. Municipal authorities fear that shutting down the department without clearing the pending dues could result in a major revenue loss.
In Pune, many traders did not clear their LBT payments even before the introduction of GST. Vivek Velankar, president of the Sajag Nagrik Manch, has urged the government to grant an extension of one year to recover the dues before closing the department.
Pimpri-Chinchwad Municipal Corporation (PCMC) had initiated an audit of registered traders and businesses to verify outstanding LBT payments. Notices were issued to 72,000 traders, revealing that ₹2,803 crore in dues remain unpaid. The civic body had sought approval from the government for an amnesty scheme to expedite recovery, but no decision has been made in over a year.
With the latest directive to shut down LBT departments, questions loom over how the pending dues will be collected. PCMC has indicated that an extension for recovery may be requested from the state government.
