Pune: The Maharashtra government has announced the permanent closure of the Local Body Tax (LBT) departments across all municipal corporations from April 30, 2025. This decision comes as a part of the state's transition to the Goods and Services Tax (GST), which replaced LBT in July 2017.
The order was issued by the Urban Development Department’s Deputy Secretary, Shrikant Andage, marking the final phase of LBT abolition after seven years. However, due to pending legal disputes and unresolved penalty recoveries, the complete shutdown of LBT departments is unlikely.
The Pune Municipal Corporation (PMC) is expected to face a significant financial impact, with ₹200 crore in LBT recoveries now uncertain. Reacting to this, Sajag Nagrik Manch’s Vivek Velankar has urged the state government to extend the functioning of the LBT department by another year to ensure complete GST collection and prevent revenue losses.
Legal Cases and Pending Recoveries Keep LBT Department Functional
Despite the closure directive, several LBT-related penalty cases are still being contested in court, and crores of rupees remain to be collected. As a result, the LBT department may continue operating in a limited capacity.
Additional Commissioner Prithviraj B.P. confirmed, "Several LBT cases are ongoing in court, and penalty recoveries worth crores of rupees are still pending. The department will not be completely shut down, and some officials and employees will continue working to handle these matters."
