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Answer:
The octroi duty is a tax paid on certain categories of commodities as they enter the territory by a local government unit, usually the commune or municipal authority. The tax was first imposed in Italy during the Roman era, when it was known as vectigal, or portorium.
It is a fee for enabling goods to pass through a jurisdiction. The octroi was eliminated on July 1, 2017, when the Goods and Services Tax (GST) was implemented across the country.
Following are some of the goods on which Octroi Tax is levied:
- Leather goods
- Food grain
- China Made Products
- Cars and other motor vehicles
- Imported glass
- Products made from wood
- Goods manufactured from silk
- Domesticated animals
- Items made from gold
