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Introduction

Octroi is a local tax Octroi is mainly charged for those goods which are going to be consumed or sold in Mumbai

Octroi is collected at Air Cargo complex (ACC), MBPT and Octroi check posts

Goods which are not going to be consumed or


sold in Mumbai are free from Octroi

Research Objective

To identify the efficiency of the current systems employed for collection To identify reasons for shortcomings in efficiency level Recommend practices to reduce bottlenecks and increase efficiency

Methodology Used

A questionnaire was prepared which would give

more and accurate information

The questions were framed in such a way so as to cover all the aspects of Octroi procedure

The Custom Housing Agents need to fill up the questionnaire and send it across for analysis

Sources of Data

Primary Source
Questionnaire

Sample Design

Target Population: The Custom House Agents at the

Octroi Toll Booths

Sample size: 100

Number of Respondents: 80

Sampling method used: Simple Random Sampling

Data Analysis

Sampling Units
25 for ACC 25 for MBPT 10 each for 5 Check posts

Number of target group responded


22 at ACC 23 at MBPT 35 at the check posts

Number of target group not responded 20

Findings
Time In Hours
Time taken for the Octroi procedure 3.5 3

2.5
2 1.5 1 0.5 0 ACC MBPT Check Posts Time In Hours

Findings
Time taken for the Octroi exemption procedure (minutes)
100 90 80

70
60 Air Cargo Complex 50 40 30 MBPT Octroi Check Posts

20
10 0 Collection Center

Findings
Is BMC in demand for more documents

27%

CHA said Yes CHA said No

73%

Findings
Is there lack of skilled staff

27%

CHA said Yes CHA said No

73%

Findings
Do you want token system?

23%

CHA said Yes CHA said No

77%

Conclusions

Due to EDI system, paper work is reduced at some extent but there has not been a full utilization of EDI system by BMC. Still there are some drawbacks such as no sharing of information between Customs system and BMC Octroi office, no database of importer is maintained, computers are used for only data storage There is repetition of Document verification at the collection centers Less time will take in EDI system than non- EDI system if full utilization of system is done by BMC. Online system is beneficiary Token system is currently started and its too early to comment on it. It requires some time so CHA can get used to it

Recommendations

Repetition of document verification can be eliminated by using computerized system. It will reduce time required for completion of Octroi payment Once you feed data of one importer and issue importer a permanent number which importer can use for the next time. Next time importer will enter only permanent no. and Inspector will get all data about importer Strict checking is necessary at office so CHA must know which document is necessary and accurate Training is necessary or information about documentation should be provided on site for CHAs. CHAs will get clear idea about documentation while filling the application for Octroi BMC should appoint skilled staff so accuracy will be increased as well as time required for payment will decrease