Times of India      21.12.2010

NEW DELHI: If you are
planning to start a new venture – from general store to a five-star
hotel – get ready to shell out more as Municipal Corporation of Delhi
(MCD) is mulling an increase in licensing fee by 10 times. In its
budget proposal before the health committee, additional commission
(health) has proposed a steep rise in the fee.

According to the
proposal, the licensing fee of banquet halls and restaurants with a
sitting capacity of more than 50 seats has been increased to Rs 10,000
as against the existing fee of Rs 500. “If the licensing fee is
increased, the renewal fee will also go up. This will make things
difficult for people who plan to start a new enterprise,” said a senior
MCD official. Similarly, coffee houses or cafés, cinema halls, clubs,
swimming pools etc might have to pay Rs 5000 as the fee.

Till
now, the minimum licensing fee charged was Rs 240 – from saloons, small
resturants, tea stalls etc – which has been increased to Rs 500. The
worst affected would be small-time vendors like ice-cream and water
trolley operators as they might have to shell out Rs 1000 to get the
licence. At present, these small-time vendors pay just Rs 90 for the
licence.

Sources say the cash-strapped MCD is now looking for
newer ways of increasing its revenue, after its recent proposal to
increase property tax in residential areas was shot down. “MCD is facing
a financial crunch and an increase in licensing fee would help the
civic agency. There is a proposal to increase toll tax by 15%. If these
two proposals are cleared, it will put a lot of pressure on the service
and hospitality industry,” said an MCD official.

The proposal will be tabled in the health committee
meeting this week. If approved, it will then be presented to the
standing committee. “We have received the additional commissioner’s
budget proposal. We will consider the hike in different categories. But
we don’t want to burden the common man unnecessarily, so that hike will
be well-balanced. We will soon present the budget to the standing
committee,” said Dr VK Monga, chairman, health committee, MCD.