Trade licences may be integrated with property tax and revenue records

BBMP wants to bring in more properties in the tax net

October 19, 2019 09:30 pm | Updated October 20, 2019 08:06 am IST

Gandhi Bazaar in Basavanagudi. Though over 70 different kinds of trades – from paan shops, kirana stores, pharmacies and even IT companies – need a trade licence, the civic body has been unable to cover all the business establishments in the city.

Gandhi Bazaar in Basavanagudi. Though over 70 different kinds of trades – from paan shops, kirana stores, pharmacies and even IT companies – need a trade licence, the civic body has been unable to cover all the business establishments in the city.

The Bruhat Bengaluru Mahanagara Palike (BBMP) is contemplating increasing the validity of trade licences from one year to five years. There are also plans to integrate trade licences with property tax and revenue records.

If the civic body gets its way, applicants looking to renew trade licences or apply for new ones will have to furnish the khata extract as well. This, officials said, will integrate the system with revenue records to ensure that properties are covered under the tax net. Once integrated, pending tax dues, if any, can be collected from the applicant.

“The proposal is yet to be fleshed out. We have sent the proposal to the Legal Cell to ascertain the legality and feasibility,” said a senior BBMP official.

Sources said the proposals – increasing the validity of trade licences and integrating them with property tax and revenue records – would be placed before the BBMP council.

The BBMP hopes that these measures will help plug revenue leakage and ensure that more trade licences are issued. Though over 70 different kinds of trades – from paan shops, kirana stores, pharmacies and even IT companies – need to get a trade licence, the civic body has been unable to cover all of them.

The BBMP had made attempts in the past to cover more trades, but the number of licences issued had not seen any significant increase over the years. According to a senior health official, the number of trade licences issued has not crossed 55,000. This is just a fraction of the commercial power connections in the city.

Health officials claim that Bescom, the power utility, had issued over six lakh commercial connections in the Bengaluru metropolitan area, most of which are within the BBMP area. This means that many trades are operating without a valid licence.

BBMP Commissioner B.H. Anil Kumar said that, as per zoning regulations, some commercial establishments are allowed in residential areas. “Issuing trade licences will help regulate commercial activity in residential areas. It is also a revenue source for the civic body,” he said.

BBMP to allow essential shops in residential areas

The Bruhat Bengaluru Mahanagara Palike (BBMP) is proposing to amend the trade licence bylaws to allow essential shops in residential areas. As per the rules, trade licences are not issued to shops or businesses on roads less than 40 feet wide in residential areas. However, sources said, it has been recommended that only certain trades be allowed keeping in mind the needs and convenience of the neighbourhood.

“One round of discussion with Mayor M. Goutham Kumar and BBMP Commissioner B.H. Anil Kumar has taken place. Only certain essential trades, such as grocery shops, milk parlours, medical shops and vegetable shops, are being considered,” the official said, and added that the civic body would seek legal opinion on whether the amendment can be incorporated, given that zoning regulations have already been specified under the Bangalore Development Authority’s Revised Master Plan.

The official said that the BBMP council will have to take a call on this and the proposal is likely to be tabled at the meeting scheduled later this month.

Residents up in arms

Various Residents’ Welfare Associations (RWAs), however, fear that such a move will pave the way for ‘non-essential’ commercial establishments.

Sneha Nandihal of I Change Indiranagar pointed out that layouts developed by the BDA had clearly demarcated sites for shops where neighbourhood conveniences could be set up. “However, now there are offices and even wine shops in residential areas. This is a gross misuse of the concept. What the BBMP is proposing is not legal,” she said.

Urban activist C.N. Kumar pointed out that zoning regulations and the Karnataka High Court orders are clear on the neighbourhood conveniences that are to be allowed in residential areas. The implementing authorities had failed to ensure these directions and rules are adhered to. “It is not a question of allowing some shops to be set up in residential areas. This move will obviously result in other problems, such as lack of adequate parking spaces,” he said.

Nitin Sheshadri of Koramangala RWA pointed out that zoning regulations do not come under the scope of the BBMP. The Revised Master Plan 2015 is still in force, as the RMP 2031 is yet to be notified. “The draft of RMP 2031 was notified, but many citizens and citizens’ groups have submitted their objections. It is now gone into cold storage. So, making amendments at this stage does not make sense,” he said.

0 / 0
Sign in to unlock member-only benefits!
  • Access 10 free stories every month
  • Save stories to read later
  • Access to comment on every story
  • Sign-up/manage your newsletter subscriptions with a single click
  • Get notified by email for early access to discounts & offers on our products
Sign in

Comments

Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.

We have migrated to a new commenting platform. If you are already a registered user of The Hindu and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.