Trade License, Overview.
Defination Trade License is a license issued by the municipal corporation which gives you permission to carry on the particular trade or business for which it is issued.
- BBMP Estimates that there are over 4 lakh establishments in Bangalore which require a trade license.
- The Min, Max, average and Median Trade license fees paid in Bangalore are Rs 20, 773200, 3734.93, 1200 respectively.
- BBMP collected a total of Rs 16 crores for the period under survey.
- At the median Rate BBMP has the potential to collect Rs 48 Crores
- If we consider the average the fee collection should be Rs 149.4 Crores.
Let us explore where this revenue leak is taking place.
- An Analysis of Trade license data from 2015 shows that BBMP has either failed to collect or to report the collected trade license fees from traders in Mahadevapura and Yelhanka Zone.
- BBMP collects annual trade license fees from some 55,000 traders.
- By BBMP’s own admission it needs to collect fees from some additional 4 lakh traders.
- As per SC 2% of a cities population should be allowed to ply their trade as street vendors, The data on this 2 lakh street vendors is missing. Data Available indicates they have collected 16 Crore from 40284 traders. We request BBMP to put the remaining data online.
- The analysis of available Data shows that the reported fees collection is far less than the potential.
- This year(2016) BBMP has increased the fee rates (at least doubled for all categories, 4 times increase for a few category) So the potential collection for 2016-2017 will be 301.87 Crores