Gold‎ > ‎Gold in February 2011‎ > ‎

Tar more precious than gold within PMC limits! gold




Tar more precious than gold within PMC limits!


As per revised octroi it will cost ` 3 to bring in ` 2 cr worth of gold, which is 50 paise less than tar. PMC bosses conveniently say it’s a ‘printing error’


If you want to know a surefire way to lose crores of rupees in revenue, take a crash course at the Pune Municipal Corporation (PMC).

After being at loggerheads with the city jewellers over octroi rates for gold for over a year, the PMC has revised octroi rates on the yellow metal bringing the same down to Rs 3 for 10 kg of gold brought into its limits, as against the previous rate of 0.35 paise per Rs 100 worth of gold.

In terms of money, the new octroi rate translates to a loss of Rs 69,997 per 10 kg of gold. At 0.35 paise per Rs 100 worth of gold, the PMC was earning Rs 70,000 per 10 kg of gold brought in from outside its limits. A resolution to change the octroi rate for gold was taken during a special general body meeting on February 5.

The incongruity of the decision can be observed when octroi rates for more commonplace items are taken into consideration, on which octroi is levied based on Rs 100 worth of the item: Rs 3 for cotton, Rs 3.50 for tar, Rs 3 for combs, Rs 4 for milk cream.

At Tuesday’s bullion prices, 10 gms of gold cost Rs 20,486 which means 10 kg of gold would cost over Rs 2.05 crore. As per the PMC’s new gold octroi rates, it would cost the gold merchant a mere Rs 3 in octroi duty to bring in Rs 2-cr worth of gold into the city, but a dealer in combs would pay the same amount for combs worth Rs 100.

The special GB meeting fixed the same rate for gold in the form of primary chips, biscuit and raw form, platinum, diamonds and American diamonds.

Subject No 526 of the special GB meeting’s agenda on February 5 clearly mentions that, except for gold and silver, octroi will be charged according the old rates.

PMC octroi chief Hemant Nikam told Pune Mirror, “The basic docket for the Standing Committee meeting in December 2010 was different from that which was tabled before the GB on February 5.

The PMC octroi post at Balewadi

In the docket presented to the Standing Committee, the administration clearly mentioned that new rates will be charged based on price, which was Rs 3 for Rs 100 worth of gold.”

However, NCP leader and Standing Committee member Nilesh Nikam told Pune Mirror that it was “just a printing mistake”.

RTI activist Vijay Kumbhar has written to the PMC commissioner and is trying to attract his attention to the fact that how the municipal secretary, PMC administration and Standing Committee members have not taken note of this matter.

He said, “Now, the PMC is saying that it is a printing mistake but I know if we would have ignored this then they would have gone on to charge Rs 3 per 10 kg gold in octroi duty.

Now, as per the BPMC Act, PMC will have to convene a special GB meeting, or it will have to rectify the same in a regular GB meeting after three months.”

When contacted, Fatehchand Ranka, chairman, Pune Saraf Association told Mirror, “I have not yet seen the copy of the PMC’s resolution, but it could be a printing mistake as octroi has always been charged based on price.”

Comments