Among the few revenue sources for the BBMP is trade licences that are issued for over 70 different kinds of businesses in the city. However, the number of such licences has not crossed 55,000 in the recent past, which civic officials admitted, was a fraction of the number of commercial power connections in the city.
To increase revenue by plugging leakage, the BBMP wants to bring more trades under its ambit, and has sent a proposal to the government, which has sought a justification for this. The BBMP is preparing a report to be submitted to the government. “The report will have to be approved by the Standing Committee for Health. We stand a good chance of being allowed to cover more trades,” sources said.
The BBMP has collected data on commercial connections from Bescom, which has around 5.30 lakh such connections in BBMP area. “When we applied a filter – same name and address – and there were around 3.63 lakh connections left,” said a source in the BBMP. Commercial establishments in industrial areas, Special Economic Zones and tech parks, do not require BBMP’s trade licence, while small-scale industries under the Karnataka Small Scale Industries Association are exempt.
The BBMP is also trying to regulate trades in residential areas. Civic Commissioner B.H. Anil Kumar had said they had sought an amendment in zoning regulations to allow some essential trades in residential zones, such as neighbourhood provision stores, pharmacies, etc.
However, it will not issue trade licence for businesses and establishments on roads less than 40 ft wide that have been opened after 2015. Similarly, the licence will not be issued if the trade occupies more than 20% of the built-up area in a building on a road that is over 40-ft wide.
Getting a trade licence is now simple
The BBMP has simplified the process of getting new trade licence or applying for renewals. Under the new process, which came into effect on February 1, the application process, including payment of registration/ renewal fee is online. Traders need to submit two documents – rent/ lease agreement and electricity bill.
For new applications and renewals, the licence fee is to be paid without penalty till February 29; with a fine of 25% of the renewal fee from March 1 to 31. From April, the licence fee will have to be paid with a fine of 100%.
According to senior BBMP officials, traders can also choose the duration of validity of the licences from one to five years. “They can track the application, and it will get an intimation when it has been processed and the licence can be downloaded online. The entire process had been streamlined,” said a civic official.