The two city corporations of the capital have remained irrevocable on their demand over reintroducing octroi charges and urged the government to make it mandatory for all vehicles plying on city streets.
Octroi charges are taxes paid by the heavy vehicles, such as trucks carrying goods, to the city corporation exchequer while entering the city.
At the same time, authorities of the two city corporations – Dhaka South City Corporation (DSCC) and Dhaka North City Corporation (DNCC) – also urged the government to introduce a taxation system for all utility service providers in the capital for using lands owned by the local government bodies.
Already, the DNCC and DSCC have sent a proposal to the Local Government Division to form an “ideal schedule” to consider the introduction of the octroi charges and imposing city tax.
Several high officials from DSCC and DNCC also told the Dhaka Tribune that the proposal was under scrutiny and if accepted, the new tax system would increase their revenue seven folds than the present amount.
Earlier, both city corporations announced their budgets for fiscal year 2014-15 and placed a demand for a share of the road taxes collected by Bangladesh Road Transport Authority (BRTA) from city vehicles.
“The octroi system was in effect till the 80’s but was cancelled later. If we could restore it, we could earn over a billion in taka per year,” said DNCC Administrator Md Firoz Jalil while defending his demand at the corporation's budget placement programme.
“Heavy vehicles enter the city everyday and put enormous pressure on our [city] roads. Huge sums are needed to repair roads every year. But, the BRTA does not share revenue collected from vehicle registration, licence issuance and others, with any of the city corporations,” he added.
Meanwhile, at DSCC budget placement programme, its Administrator Md Ibraheem Hosein Khan said: “The DSCC and DNCC should get 75% of the revenue collected, as they are the ones who construct and repair the roads on which these vehicles ply.”
He also proposed that the government should make it obligatory for all vehicles, registered from outside the capital, to collect tax tokens worth Tk1,000.
“Both city corporations have to spend millions in constructing, repairing and maintaining all the roads in the capital for which these vehicles pay no charges. Whatever they pay ends in the BRTA exchequer,” he pointed out.
DNCC Administrator Firoz further urged the government to restore the octroi charges system and introduce a taxation schedule for utility service providers, such as Dhaka Water Supply and Sewerage Authority, Dhaka Power Distribution Company, Dhaka Electric Supply Company Limited, Bangladesh Telecommunications Company Limited, Titas Gas and others, for using city corporation-owned lands.
When contacted, BRTA Chairman Nazrul Islam told the Dhaka Tribune yesterday: “The issue is a matter of inter-ministerial decisions. The city corporations can make such demands but it is up to government high-ups to decide whether it is applicable or not. It is too early for me to make a comment in this regard.”
Talking to the Dhaka Tribune, former LGD secretary Abu Alam, told the Dhaka Tribune that the government should take the decision after verifying the demands as revenues collected from vehicles go into the government fund.
“Every year, the DSCC and DNCC have enough income sources, and both corporations have more money coming from the national budget than BRTA. So, the government should follow its own course in this regard,” he added.