The civic administration’s proposed move to hike octroi rates has met with stiff resistance from political parties as well as various organisations . Their contention is that people are already bearing the brunt of the slowdown and the hike coming at such a time was not at all justified.

BJP leader in Pune Municipal Corporation (PMC) Mukta Tilak said, “The proposal that has been tabled before the civic standing committee is uncalled for. It is completely unjustified and people will suffer if the hike comes into effect. Owing to lack of financial planning, the civic administration has landed in trouble and it is now passing on its burdens to people.”

“If the hike comes into effect, incidents of tax evasion are likely to go up and the civic body does not have efficient machinery to curb this evasion. Therefore, we feel that instead of hiking tax, the civic administration should first stop being a spendthrift and carry out selective projects first,” she added

Meanwhile, general secretary of Patit Pavan Sanghatana Niranjan Phadke has also opposed the proposal saying a hike would automatically increase fuel charges in the city. “If it happens, Pune city, which once ranked second in high fuel prices after Bangalore would once again top the list. The fuel prices would shoot up, thus inconveniencing the people. Therefore, our demand is not to let this happen.”

Grappling with the lack of sufficient funds and in order to raise funds for the incomplete projects, PMC had proposed to hike octroi. Through this, it was targeting an Rs 15 crore per month. It defended the proposed hike citing reasons like want of funds for increased salaries of civic employees under the Sixth Pay Commission, and development to be carried out in Uruli Devachi and Phursungi villages after protests by local residents over the dumping of garbage.