Ghaziabad: Civic body’s executive panel gives nod to increasing licence fee

The proposals are in line with the government order issued in December 1997 with respect to the licensing regime. The licence fee has not been increased since 1997

The executive committee of the Ghaziabad municipal corporation, during its meeting on Tuesday, approved proposals related to increasing the licence fee of different business establishments under the municipal body’s jurisdiction from the next financial year.

Ghaziabad municipal commissioner Mahendra Singh Tanwar and mayor Asha Sharma convening the executive board’s meeting on Tuesday. (Sakib Ali/HT photo)

In December 1997, a government order stated that licences must be issued to business establishments and fixed the fees for the different kinds of licences. However, the municipal corporation never got around to enforcing the order.

According to officials, the original proposal charged a ₹1,000 licence fee from establishments such as hotels, lodges, guest houses and marriage halls annually. Now, the executive committee has increased the amount to ₹3,000. Likewise, the licence fees for nursing homes with up to 20 beds have been hiked from ₹2,000 to ₹5,000 while those with more than 20 beds will have to shelve out ₹6,000 instead of ₹5,000 annually. “There was a proposal to increase the licence fee for private clinics from ₹3,000 to ₹4,000, but we have not increased the rates for this category. as there are many small clinics in the city. We are considering lowering their fees to ₹2,000 and will place this proposal before the board. Overall, the hiked rates will be applicable from the next financial year. There has been no hike since 1997,” said municipal commissioner MS Tanwar, adding that the establishments should start applying for licences.

There was another proposal to levy a licence fee of ₹1,500 on small shops selling cold drinks, aerated water and snacks. “The executive committee decided not to approve it as levying this fee would mean an additional financial burden on the vendors. The increase in licence fee has been approved for certain categories, wherein people have the paying capacity while relief has been granted to others,” said Tanwar.

The corporation also approved a proposal to levy an annual licence fee of ₹200 on establishments engaged in trading/selling of tobacco products.

“The owners with permanent shops will have to pay ₹1,000 annually and wholesalers will have to shell out ₹5,000. For temporary shop owners, a licence will not mean that they have ownership of the land. Only a valid licence will give them the approval to sell,” said Sanjeev Kumar Sinha, the corporation’s chief tax assessment officer and licensing officer. He added that the increase in the licence fee will enable the corporation to earn about ₹5-6 crore annually.