Now, pay penalty for delay in trade licence renewal from May 1 onwards

Tribune News Service

Amritsar, April 28

Starting from May 1, business owners who fail to renew their trade licences will face a 25 per cent penalty. Additionally, from July 1, a 10 per cent fine will be imposed on delayed payments of conservancy charges. According to estimates, over 55,000 commercial establishments in the city fall under the ambit of this regulation.

Although there are a large number of businesses in the city, due to staff shortage in the Municipal Corporation (MC) and the absence of a comprehensive field survey, only 15,801 traders renewed their trade licences and paid conservancy charges last year. The current charges are Rs 500 for renewal of a trade licence and Rs 300 for annual conservancy fee.

A significant hurdle is that most traders, pressed for time, are unable to visit the corporation office to renew their licences. On the other hand, the Municipal Corporation does not have enough personnel to conduct field visits for issuing or renewing licences. Notably, no updated survey has been conducted to accurately assess the number of businesses requiring a trade licence.

Back in 2006, around 25,000 trade licences were issued. At that time, after the abolition of the Octroi system, all inspectors were sent to the licensing branch, leading to a notable increase in registration of business establishments. However, in later years, these inspectors were reallocated to other departments.

Sanitary inspectors have been assigned the task to renew and issue trade licences, but due to their engagements in maintaining city’s sanitation, they are unable to focus adequately on their new work. At present, the trade licence wing of the Municipal Corporation functions with just two inspectors and has no clerical staff, further compounding the challenge to work efficiently.

From April 1, 2023, to March 31, 2024, the Municipal Corporation collected conservancy charges along with renewing 14,950 trade licences, generating Rs 1.96 crore in revenue. In 2024-25, 15,801 licences were renewed, bringing in

Rs 2 crore in civic body’s exchequer, an increase of only 851 new licences compared to the previous financial year.

Municipal Commissioner Gurlpeet Singh Aulakh said, “The civic body is focusing on increasing staff in the Trade Licence Department.” He appealed to business owners to renew their trade licences on time. He said trade licence could also be renewed online.

The corporation’s portal for depositing trade licence fee and conservancy charges was reactivated last week after a 20-day closure. The portal has been upgraded for the new financial year.