Recently I was researching on a corrugated industry in Maharastra. The company is struggling from a long time because of increased competition and less innovation. While I was going through the balance sheets, I noticed that LBT(Local body tax) was taking a major chunk of their profits.
It is not only this company but many more. And rather than the profits, this Tax tool just adds to the complexity of tax collection in India. LBT was a protracted issue in Maharastra; the congress could not reach a consensus and this remained a unsolved issue. But Kudos to BJP Maharastra for abolishing the blemished LBT.
Effective from august 1, government has decided to abolish LBT for trader with turnover of less than 50 crores. This abolishment will benefit 99.85% of the traders that are operating in Maharastra.
It is not only this company but many more. And rather than the profits, this Tax tool just adds to the complexity of tax collection in India. LBT was a protracted issue in Maharastra; the congress could not reach a consensus and this remained a unsolved issue. But Kudos to BJP Maharastra for abolishing the blemished LBT.
Effective from august 1, government has decided to abolish LBT for trader with turnover of less than 50 crores. This abolishment will benefit 99.85% of the traders that are operating in Maharastra.
Keenly waiting for the GST.
Stats sourced from Economic times.
Stats sourced from Economic times.
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