Anirudh Gupta

Ferozepur, June 30

Uncertainty prevails among traders in two cantonments in the state — Ferozepur and Jalandhar — over abolition of octroi after the GST comes into force tomorrow. Octroi is still being levied in the two cantonments even as it was discontinued in others parts of the state more than 10 years ago. Neither the Cantonment Board officials nor local councillors have any idea about the status of octroi post GST.Nand Kishore, president, Beopar Mandal, said the government should immediately clear the air on the matter lest traders, which were already reeling under economic distress, would have to bear the brunt of double taxation.Sources said since the cantonments do not fall under the direct administrative control of the state government, residents here had to shell out more money in lieu of octroi. “We have been losing customers everyday as they preferred to buy commodities from the city where goods were cheaper as octroi was not levied there,” said Ashok Mahavar of Beopar Mandal.As per Section 66(2) of the Cantonments Act, 2006, cantonment boards are empowered to impose any tax, which is in force in any municipality in the state. As octroi was imposed in various municipalities, it was levied in cantonment here also. “However, the subsequent decision of the state to abolish it from municipal areas did not debar the Cantonment Board from levying it within its limits,” said an official.Earlier, the state government had asked Ferozepur and Jalandhar cantonments to stop levying octroi and had offered to compensate them under the Punjab Municipal Fund (Amendment) Act, 2008. “The proposal was forwarded to the MoD for amendment in the bylaws to enter into an agreement with the state government. However, a final decision was not taken,” said an official of the Cantonment Board, Ferozepur.