The business houses and commercial units will feel the pinch as the GMC contemplates hike in trade licence fee

Dec. 15: The cash-starved Guwahati Municipal Corporation has decided to hike the trade licence fee to augment its revenue.

The hike will come into effect from the next financial year starting April, a source said.

The civic body has targeted to increase its revenue from the existing Rs 5 crore to Rs 15 crore from trade licence fee alone.

“The existing trade licence fee was fixed about five to six years back. Considering the fast growth of the city and increasing number of shopping malls and commercial establishments it is high time for the GMC to increase the trade licence fee. The increase would not put too much burden on the traders. However, the final decision on the percentage of hike would be taken after discussion with the trade bodies. The consumers market is fast growing and many of the commercial establishments are doing well in their business justifying the trade licence fee hike,” the source said.

The total revenue collection of the corporation is around Rs 24 crore per annum and the two main sources of revenue are property tax and trade licence fee.

The GMC, however, will move cautiously by taking the trading community into confidence in case of a hike in the trade licence fee.

This comes after it faced widespread opposition against the recent hike in property tax. To amicably resolve the issue, the civic body has even mooted the idea of giving tax concessions to senior citizens at a meeting held last week.

Fees for annual renewal of trade licences will also be increased.

Under Section 390 of the Guwahati Municipal Corporation Act, 1971, any person carrying on any trade or profession within the municipal area requires to obtain a trade licence from the corporation.

“Hike in the trade licence fee is among the initiatives that the GMC has undertaken to carry out financial reforms in the organisation under the Jawaharlal Nehru National Urban Renewal Mission. According to the guidelines of the scheme, the financial position of the GMC will have to be improved if Guwahati is to receive funds under the mission,” the source said.

On the other hand, the GMC has also decided to tighten the noose around the erring traders who are not willing to renew their trade licences.

“According to the laid-down rules, the business establishments need to renew their trade licences at the end of every financial year, that is March 31. They have to pay the renewal fee to carry on with their trade. But a section of traders is yet to renew their licences this year making the GMC to lose out on a sizeable amount of revenue. The corporation has already issued notices to erring traders and asked them to clear their fees within December 31 or face closure of their shops,” the source said.