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