A special council meeting of the Kochi Corporation held here on Saturday to review the civic body's decision to effect a steep hike in the annual licence fee for shops was dismissed without taking a decision, because of the model code of conduct that has come into force ahead of the by-election to the Piravom Assembly constituency.
As soon as the council had convened, Mayor Tony Chammany ruled that the agenda scheduled for the day could not be taken up for discussion owing to the model code of conduct. When opposition councillor K.N. Sunilkumar asked what the alternative was, since a decision could not be taken on the revised licence fee, Mr. Chammany said the Corporation will write to the State government and follow the instructions thereon.
In February last, the State government brought about a moderate hike in the annual licence fee (dangerous and offensive trade licence) with a caveat that local bodies concerned can probably decide on a higher fee. With the decision to collect the revised fee in limbo, the Corporation will go by the government rate for the time being.
The health standing committee had proposed a steep hike in the annual licence fee (dangerous and offensive trade license) in an effort to boost the Corporation's revenue, sparking off stiff opposition from the merchant community. The implementation of the new multiple slabs-based fixing of fee would have seen it rocketing from a sedate Rs. 250 to the height of up to Rs. 1 lakh in some cases.
The fee was to be revised based on factors ranging from a shop's turnover and stock to its size and the value of the articles being sold. The Corporation's idea was that there was no logic in even big jewellery shops and automobile showrooms paying a paltry fee irrespective of their business. However, the Corporation had assured that the medium and small scale merchants would only have to pay in the scale of Rs. 650 to Rs. 1,000.
Earlier, the Greater Cochin Development Authority chairman-designate and councillor N. Venugopal was given a reception ahead of the council meeting. He was received at the entrance by the fellow Congress councillors and brought to the council hall in a procession.
