A NEW CONCEPT : The term 'Octroi' needs no introduction as almost everybody in our country is familiar with it. Octroi has been and is still a main source of revenue for most of the urban bodies in India. There has. however, been a persistent demand from a large section of the trading community across the county to abolish it due to certain inherent shortcomings of this system. First of all it is an obsolete method of tax collection. Secondly it involves stoppage of vehicles at the check posts outside the City limits, thereby obstructing a free flow of vehicular traffic. After an in-depth study by various Committees appointed with a view to finding a viable alternative, the Government of Maharashtra decided to try a novel account based system of levy of Cess in lieu of 'Octroi'. The Navi Mumbai Municipal Corporation was chosen consciously for the introduction of this system because of the existence of a large industrial belt and an organised trade and industry in Navi Mumbai. Another important contributory factor was that the area of this Corporation was hitherto an Octroi-free zone and, therefore, not being a case of switch over from an established system to a new one, the implementation thereof was expected to be without hiccups.

WHEN WAS IT INTRODUCED ?
The Navi Mumbai Municipal Corporation (NMMC) has introduced in its area, an account based system of levy of Cess in lieu of Octroi, with effect from 1st day of June, 1996.

HOW IS IT DIFFERENT FROM OCTROI ?
In the new system there are no check posts i.e. 'Nakas' for collection of tax and, therefore, it involves no stoppage of vehicles. A 'dealer' liable to pay cess, on the basis of his exceeding the prescribed limit of the turnover either of all his sales or all purchases effected during a financial year is required to got himself registered with the Corporation.