Released on = September 28, 2006, 11:25 pm

Press Release Author = Mr. Anuj Singhal

Industry =

Press Release Summary = Maharashtra is among a few states left now where Octroi is
applicable and the channel yearns for its abolishment as one by one most of the
state governments continue to remove octroi.

A dialogue is on between the Maharashtra state government and the trade associations
including TAIT regarding the issue who are pushing the government to remove this tax
as soon as possible but the long decision making process has become a stumbling
block in the industrial and business growth which has left the channel partners with
lot of agitation and intolerance.


Press Release Body =

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Maharashtra channel waits for octroi removal
By Chetna Mehra
27 September 2006



Maharashtra is among a few states left now where Octroi is applicable and the
channel yearns for its abolishment as one by one most of the state governments
continue to remove octroi.

A dialogue is on between the Maharashtra state government and the trade associations
including TAIT regarding the issue who are pushing the government to remove this tax
as soon as possible but the long decision making process has become a stumbling
block in the industrial and business growth which has left the channel partners with
lot of agitation and intolerance.

Speaking to itVARnews regarding the issue, President TAIT, Chetan Shah said,
\"According to the CM, the state government has already taken the decision on the
issue and formal announcement on the action plan of implementation will be done in
the month of November.\"

He added, \"After this announcement, we are currently waiting for the state
government to take some concrete actions. If the things go delayed more, we plan to
continue our efforts till the octroi abolishment occurs.\"

He continued that the association understands the delays and has been patient enough
as Octroi is one of the major sources of revenue for government.

Commenting on the situation, Proprietor, Aar Vee Computers, Vinod Moolchandani said,
\"Because of octroi we cannot sell our products outside the state as after octroi the
price of the same product increases. We have to stick to the local regions for doing
business.\"

Managing Director, HTP Systems Pvt. Ltd., Rajiv Jain added, \"Due to this tax the
price of octroi paid goods increases by 5.5 percent which causes a visible
difference in octroi paid goods and octroi non paid goods prices (by some second
hand means) and the consumer obviously choose for the products available in lesser
prices, bringing us a deal of loss.\"

Talking about the TAIT\'s role in the whole issue channel differs in opinion. Giving
his viewpoint, Moolchandani added that TAIT\'s functioning has been satisfactory in
the issue. Whereas, Jain replied, \"I don\'t see much activity by TAIT these days but
if on the backstage, the association is upto something then I am not aware of that.\"

On the other hand Shah responded on the question saying, \"TAIT has been very active
in the whole process of convincing government to remove octroi. We have been holding
meetings with the top officials of state government and BMC and are working with
other trade bodies like Mumbai Chambers of Commerce etc. to abolish it. We hope that
in near future Maharashtra will be Octroi free.\"

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