MCD issues uniform rates for general trade license and storage license, traders oppose move

New Delhi: The unified Municipal Corporation of Delhi (MCD) has issued orders for increased uniform rates in trade and storage licences, that are applicable on general trading, warehouses, showrooms, godowns, and cold storage, among others, said officials on Friday.

The move comes after the revising of property taxes, and health trade and factory licences.
To be sure, the increased licence fee will impact the traders of East and North Delhi areas the most. The MCD has also stated that the licence fee will be increased by 15% for all categories every three years from the date of implementation of the new rates — a condition that is being incorporated in all new licencing regimes, said officials.

According to MCD spokesperson, licences can be renewed within 30 days from the date of expiry, without any penalty, and thereafter a penalty of 5% per month and a doubled penalty will be imposed at the end of the year.

“Following the trifurcation of the Municipal Corporation of Delhi in 2012, the three corporations drafted their licence policy, and the fee was fixed in accordance with the provisions of the DMC Act 2011. So, disparities existed in the fee structure approved by the three erstwhile corporations. After the unification, uniform rates have been implemented in Delhi to establish uniformity in this regard,” the MCD said.

The traders on the other hand have been arguing that the civic body is implementing steep hikes in the name of uniformity. As per the old rates, SDMC has a maximum of general trade license fee of 57,500 in A, B category, 46,000 in C/D category colonies and 34,500 in E-H category. The maximum impact will be in North MCD areas where the maximum fee under this license was 500 as per old rates and it will now range between 3,968 and maximum of 72,996. MCD officials have stated that the old rates were not revised over the last decade and were impractically low.

Traders under the Chamber of Trade and Industry (CTI) convened a convention of traders on Friday to discuss strategy to oppose the hike in various license fee by MCD. CTI head Brijesh Goyal said that the traders have strongly opposed the increased trade license fee by MCD. “All the traders in one voice opposed the withdrawal of all types of trade license fees from MCD. We will meet LG Vinay Saxena, this increase has to be reversed,” he added.