The Nashik Municipal Corporation (NMC) has passed a resolution privatising the recovery of octroi tax for financial year 2011--2012.
Mayor Naina Gholap Walzade of Shiv Sena announced the decision of privatisation in the general meeting amid protests by the opposition parties of Congress, NCP and MNS.
Besides the ruling Shiv Sena-BJP combine, Samajwadi Party and Bahujan Samaj Party (BSP) supported the move while the Congress, NCP and MNS opposed it even though a Congress corporator Laxman Jaibhave crossed party line and voted in favour of the move.
The municipal corporation presented the resolution in the general meeting as the period of contract for recovery of octroi tax is expiring by the month end.
According to sources, the NMC earned Rs100 crore more in revenue from recovery of octroi after awarding it to private contractors.
Besides opposition parties, the local industries and traders termed NMC's decision as "unfortunate" warning strong agitation against the move.
