Despite attempts by the Bruhat Bangalore Mahanagara Palike (BBMP) to bring in over five lakh traders under the tax net by issuing trade licences, the number of trade licences issued this year is less than 10 per cent of the estimated number of traders, resulting in continued losses to the cash strapped civic agency.
The BBMP has set an ambitious target of collecting Rs. 100 crore as revenue by bringing, initially, one lakh traders under the tax net this year. However, the number of licences issued increased marginally from 44,500 last year to about 50,000 with the help of special jathas. Around 3,000 trade licences were issued during the special jathas held earlier this year.
The civic body has garnered Rs. 19 crore, including through fees from fresh applicants and renewal of old licences. Last year, the figure was Rs. 18 crore.
“Though several attempts, including introduction of online applications and special jathas, have been made in this direction, only around 50,000 trade licences have been issued,” conceded a senior official in the BBMP’s health department.
According to Sections 353 and 354 of the Karnataka Municipal Corporations Act, 1976, all traders have to mandatorily obtain a trade licence from the BBMP. Though there are more than five lakh traders in the city, as per data available with the Commercial Tax Department, nearly four lakh are not covered under the BBMP’s tax net.
The official admitted that the BBMP is far short of achieving the target of bringing another one lakh traders under the tax net and revenue of Rs. 100 crore.
BBMP Commissioner M. Lakshminarayan said that registrations can be enhanced only if multiple civic agencies work together. Bescom has already shared details of commercial power connections. “For fresh commercial connections, Bescom is insisting on BBMP’s trade licence,” he added.
