The state government has failed to give more than 50% of the grant to civic body in lieu of octroi tax. The 150-year-old tax levied by the municipalities and municipal corporations was abolished by the state government in 2007.
The Ahmedabad Municipal Corporation (AMC) had collected the octroi in November 2007. From 2008, the civic body was suppose receive Rs 21,678 crore from the state but it has received only Rs 10,481.07 crore. It's been over 11 years, and the AMC is yet to receive Rs10,525 crore.
"The state government has not kept its promise to give financial help in lieu of octroi income. This has paralysed AMC financially," said Dinesh Sharma, leader of the Opposition.