The Vasai Virar Municipal Corporation (VVMC) has begun recovering Local Body Tax (LBT) and has managed to collect a record Rs 2 crores in two days.

The LBT was introduced in the Vasai-Virar region in April 2011 after it was replaced by octroi. The civic administration, however, was unable to meet its target due to untrained staff and shortage of manpower. Traders and businessmen too were unclear about the percentage of tax to be paid for various products. Traders had complained of the exorbitant taxes compared to other municipal corporations in the state.

The VVMC recently brought down the LBT on various products which came as a respite to small and medium sized industries and traders. The civic administration also conducted a workshop for employees involved in the collection of LBT.

The VVMC has succeeded in collecting a record Rs 2 crores by way of LBT from traders in the region in two days. A total of 36,500 traders have been registered for collection of the levy and more traders are being encouraged to pay the local tax. The municipality is making efforts to get traders from villages in the region to pay the levy. A number of villages that come under the gram panchayat are against paying the tax. The villagers are fighting a court battle for non inclusion into the VVMC.

Last year, the civic administration managed to collect only Rs 1.50 crores as LBT. This year the target has been raised to 300 crores.