The octroi duty for cigarettes and crackers has been hiked from two to seven per cent and on cosmetics from four to seven per cent (see box). However, daily goods such as whole milk, fresh vegetables and fish have been spared.

In March this year, the revenue department set a target of Rs 419 crore, but by the end of June, it managed to muster a little over half that amount, Rs 219 crore. The BMC's decision to remove hawkers peddling their wares outside railway stations has led to a major income shortfall, to the tune of Rs five lakh per day. The High Court had recently ruled that the BMC could not collect trade refuse charge from unlicensed hawkers. The Mayor-in-Council had approved a proposal on August 5 to reschedule the rate of octroi. The items have been classified in fivecategories, with the octroi ranging from one to seven percent.