Ghaziabad civic body proposes threefold hike in trade licence fee

The hiked rates were cleared by the corporation’s executive committee on September 28, 2021. This proposal will now be taken to the board meeting on Friday

Getting a commercial licence for starting a business venture or renewing existing trade licences is likely to become costlier from the next financial year as the Ghaziabad municipal corporation has proposed to hike the licence fee for various commercial establishments. The officials said the revised licence fee will be put before the corporation board, which is scheduled to meet Friday.

The licence fee came into effect through a government order in 1997 but the implementation took a back seat till the corporation reinforced the provision in 2021-22. (Sakib Ali/HT Archive)

According to the municipal officials, the proposed hike at least three times the existing rates. For instance, current the annual fee for hotels, lodges and guest houses, etcetera, is ₹1,000 and it is proposed to be hiked to ₹3,000.

Likewise, nursing homes (up to 20 beds) have been proposed to have a fee of ₹5,000 against existing ₹2,000. The licence fee for bars/beer bars etc. is also proposed to be hiked to ₹12,000 against the existing rate of ₹6,000. The licence fee of foreign liquor shops has been proposed to be doubled, from the current ₹12,000 to ₹24,000.

“The hiked rates were cleared by the corporation’s executive committee on September 28, 2021. This proposal will now be taken to the board meeting on Friday. In some instances, the rates have been hiked at least three times while there is a general hike for all categories. This time, the licence fee will also be applicable to vendors selling aerated drinks/cold drinks etc. Their fee is proposed at ₹1,500,” said Sanjeev Kumar Sinha, chief tax assessment officer and nodal officer for licences, Gahziabad municipal corporation.

He said public objections/suggestions were also invited on the proposal in June this year.

“The public notice for objections/suggestions was published through newspapers but no one came forward to submit their views. So, the proposal is now being taken to the board for a final clearance. Once approved, the rates will become applicable from the next financial year,” Sinha said.

The licence fee came into effect through a government order in 1997 but the implementation took a back seat till the corporation reinforced the provision in 2021-22.

During the FY 2021-22, the corporation identified 10,377 such establishments that were eligible to pay licence fee for carrying out operations in the corporation limits. Of these, 9,917 establishments obtained the annual licences while recovery certificates are being issued to others for recovery of fee, officials said.

In the current FY, the corporation identified 11,535 eligible establishments which were required to pay a licence fee. Of them, 9,453 have obtained licences so far, officials said.

“We fail to understand the criteria for the licence fee and the hike proposed. Our association has been opposing the fee. In fact, clinics have to pay a fee at the time of registration and another one for registration of biomedical waste. Now, we have to pay a licence fee as well. Too many charges are being imposed on us,” said Dr Ashish Aggarwal, former president, Indian Medical Association (Ghaziabad chapter).

As per the proposed hike, private clinics will end paying ₹4,000 in licence fee as against the current rate of ₹3,000. Nursing homes with over 20 beds will have to ₹6,000 istead of the current fee of ₹5,000.

“We will discuss the proposal in the board meeting and councillors will ensure that there is no exorbitant hike. Otherwise, it will send a wrong message to the public ahead of the local body elections that are due by the end of this year,” said Rajendra Tyagi, councillor, Raj Nagar.