Latest Answer: Hi All, It is a tax levied by civic bodies like the municipal corporation. It came following steadfast demand for the abolition of octroi from the trading community itself because of alleged harassment at the hands of octroi staff. It was first implemented in Nanded in 2010. LBT is an account-based tax which means to collect it is similar to indirect taxes like VAT or central excise. Traders have to maintain records and file returns. Octroi was a simpler system with tax being collected at city's entry points.
