Nagpur: The Chamber of Associations of Maharashtra Industry & Trade (CAMIT) has lauded the Maharashtra government’s decision dated February 24, 2025, bearing number 0225/Ltr.No.26/UD-32, directing the closure of Local Body Tax (LBT) departments in all Municipal Corporations across the state. Dr. Dipen Agrawal, President of CAMIT, welcomed this move, calling it a long-overdue relief for traders and businesses.
Dr. Agrawal highlighted that LBT, introduced in select municipal corporations in 2010 and in Nagpur from 2013, was met with widespread opposition from the trading community. While LBT was abolished from July 31, 2015, for businesses with a turnover below ₹50 crore and later subsumed into the Goods and Services Tax (GST) from July 1, 2017, the LBT departments continued to operate, conducting arbitrary and unjustified assessments.
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Monday 31March 2025
Contrary to the LBT Rules, which mandated assessments only in specific contingencies within five years from the financial year’s close, LBT officers resorted to 100% assessments of regular cases, turning the department into an instrument of harassment and extortion. There were also instances of backdated assessment orders being issued, further exacerbating traders’ grievances.
CAMIT persistently pursued the matter at various levels, ultimately engaging directly with Hon’ble Chief Minister Dr. Devendra Fadnavis. Dr. Agrawal acknowledged that this decisive action by the government was the result of CAMIT’s consistent efforts and representations.
Expressing gratitude on behalf of Maharashtra’s trading community, Dr. Agrawal praised the government’s responsiveness to traders’ concerns. “The business community is at a loss for words to express its appreciation for the sensitivity and fairness displayed by Hon’ble Chief Minister Dr. Devendra Fadnavis in addressing this long-pending issue. The closure of the LBT departments should not be viewed as a victory of one side over another but as a testament to the government’s commitment to justice, equity, and ease of doing business,” he said.
CAMIT remains committed to working with the government to create a more business-friendly environment in Maharashtra and ensure the continued growth of trade and industry in the state.
