Gurgaon: The corporation of the city of Gurgaon (MCG), which has staggered from the lack of income in the pandemic, has succeeded in collecting trade license fees from less than 1% of commercial properties in the last three months.
According to the MCG property tax record, there are around 50,000 commercial companies in four city zones which need to update their licenses or get new ones issued.
Since April this year, only 330 companies deposit their license fees, which are translated into less than 1%.
In zone 1, there are 7,488 commercial companies, but only 15 trade licenses have been issued so far, which numbered a collection of Rs 19.8 lakh.
In zone 2, Civic’s body has collected Rs 47.7 lakh of 65 of the 13,288 companies.
The highest collection is from zone 3, which has 17,298 commercial properties.
Here, RS 98 Lakh was collected from the 196 license update.
In zone 4, 54 licenses were released and RS 55 Lakh recovered.
The total number of commercial properties here is 9,345.
In total, corporations have been able to recover RS 2.2 Crore from a trading license in the last three months.
This is even though MCG encourages to encourage property owners who run various types of businesses to file a trade license.
A senior official said a mandatory trade license for all commercial properties in certain civil body jurisdictions, such as small shops, malls, cinemas, jewelry and others.
“The cost for applications and updates to trade licenses varies from Rs 500 to RS 1 Lakh, depending on the scale and business nature,” he added.
The official said that while several commercial companies had never apply for a license, another business had not renewed the document in accordance with the provisions of the corporate law Haryana Municipal, 1994.
This, officials said, was one of the main reasons for the MCG of Pundi.
Mukesh Kumar Ahuja, the head of the new MCG, has now issued direction to zonal tax officers to prepare collections of commercial property and serve recovery notice to traffic jams.
A senior MCG official said 331 notifications had been issued to be absent so far but more letters will soon be served.
Another problem that has achieved trade license revenue, officials show that many of the commercial companies operate from residential areas, which violate the norm.
In a recent meeting, Ahuja has asked officials to accelerate the recovery of pending contributions under various heads.
He has asked tax officers to conduct surveys in their zone and calculate contributions.
He has also directed his team to prepare an illegal cellphone tower report in the city and those who are within the MCG limit but with delayed contributions.
Toi recently reported that the corporation struggled to restore property tax arrears worth Rs 932 Crore, coupled with the current year’s request of RS 235 Crore.
MCG has been able to clean up only RS 18 Crore this year so far – which is less than 10% of requests.
In 3 months, MCG collects less than 1% of the trade license fee
