The Times of India             14.06.2013

Kolkata Municipal Corporation to revoke New Market 'cool' charge

KOLKATA: The Kolkata Municipal Corporation (KMC) is set to revoke and modify certain clauses clamped on shop-owners at the heritage New Market for revenue augmentation, most importantly the one that would have made them pay extra for installing air-conditioners.

TOI had, on May 4, reported how the controversial surcharge had traders fuming ('AC tax' leaves New Market traders fuming). Subsequently, on May 16, the traders had downed shutters for an entire day - the first time in living memory - to protest the surcharge, also reported in TOI.

The controversial circular from the KMC's markets department had stated that traders who had installed air-conditioners in their shops would have to pay a 50% surcharge on rent each month. This came as a blow to the traders who had been planning to upgrade amenities shoppers.

That apart, separate orders sent to the traders had landed them in a fix. For example, if a stall owner wanted to change the nature of his business, he needed to pay 50 months' rent to the civic body as penalty. Earlier, the markets department used to take 25 months' rent for such change of business. Also, if a trader wanted to transfer the rights of his stall to a legal heir, he needed to pay 250 months' rent to the civic body as a special transfer fee.

After the TOI report highlighting the traders' woes, the markets department bosses convened a meeting on June 10 and conveyed to the New Market traders that a new set of rules was being framed for them. According to the new rules, the civic body will charge 25% surcharge on installation of air-conditioners. Similarly, the markets department has decided to take 25 months' rent (in place of 50 months') for a change in the nature of the business. In cases of transfer of business, the KMC will reduce the fee from 250 months to 200 months' fees, a KMC official said.

Tarak Singh, the MMiC overseeing the markets department, said discussions were on with the traders to "modify the fees and charges".

Narayan Das, the owner of S Lalchand, the oldest garments shop, has lost 50% business this summer. "I wanted to renovate my shop set up in 1880. All I needed was a nod from the markets department to install an air-conditioner, but I gave up when the KMC asked to me pay a 50% surcharge on the rent," he said. He is, however, upbeat now. "Let us see what changes the civic body makes to give us some relief," he said.

Ajay Shaw, the owner of Royal Stores, a 113-year-old cosmetics shop, however, felt the traders would have benefitted in a major way had the civic brass exercised caution before formulating the charges. "First, the civic body is planning to levy whimsical charges. Next, it plans to withdraw those. We are caught in the middle," Shaw said. Ashok Gupta, the president of SS Hogg Market Traders' Association, said they welcomed the change but still demanded the withdrawal of all "irrational" fees.