Even as the economy shows signs of recovery, the highest revenue generating department of the country’s richest municipal corporation still seems to be in shambles, recording a 10 per cent dip in octroi collection as compared to last year. According to civic officials, the Octroi department is struggling to achieve its annual target of Rs 4,400 crore.

Figures till Monday show the total octroi collection at Rs 2410 crore since April 2009. The figures reflect the dismal state of octroi collection in Mumbai. The revenue was higher in 2008-09 during the same period —Rs 2698 crore—when the world was reeling under economic recession.

According to civic officials, drastic reduction in imports from foreign countries, particularly South East Asia, is the major reason for the dip in octroi collection this year. The octroi collected from vehicles is Rs 166 crore less than the amount that was collected last year.

Chief assessor and collector, N A Pathan, said bulk imported goods from foreign countries come via Jawaharlal Nehru Port Trust (JNPT) in the city. “There has been particular breakdown in the consignments coming from the dock. This reflects in the octroi collected from vehicles,” he said.

The other major factor is low prices of crude oil which has seen a -15 per cent dip when compared to last year. Pathan said a barrel of oil costs around $ 60 as against $ 117 in 2008. “The collection from crude oil is Rs 67 crore less,” he said. Crude oil import usually accounts for 30 per cent of octroi collection and has come down to 7 per cent this financial year. “But now it is -15 per cent as against last year’s revenue,” Pathan said.

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