Relief for Delhi traders as they can now use single window to pay trade licence fee, property tax

Kamla Nagar Traders Association president Nitin Gupta said that the licence had become an issue after the unification of the civic body in 2022, as the parameters and fees structure of the South Delhi municipal corporation was being used after unification.

“Shops at Kamla Nagar Market and Saket Nagar complex have different infrastructure as well as facilities, but since after the unification the SDMC license structure and tax slab was in place, a small pan shop was also paying a very high trade license fee… I think the 15% (licence fee) is reasonable,” he said, adding that he, along with other traders, had met the Commissioner in late October.

According to civic body officials, data analysis shows that this revised model is revenue-neutral and brings fairness and predictability for all categories of traders. The reform will also significantly reduce the need for field inspections by delinking licence fee assessment from multiple parameters, officials said, adding that this will “curb rent-seeking opportunities and promote a trust-based self-declaration mechanism”.

Chandni Chowk Traders’ Welfare Association president Sanjay Bhargava said this move will reduce harassment for traders. “The process will now be smooth, given the single tax window. Earlier only 30-40 per cent of traders used to pay the fees, but the new process will help the MCD to earn revenue,” he said.

Delhi Mayor Raja Iqbal Singh said that the move also helps in transparency and citizen-centric governance. “This historic decision will bring immense relief to the business community of Delhi by removing redundant processes and curbing avenues for harassment. By merging the licensing process with property tax, the MCD has made the system simpler, more transparent, and truly business-friendly,” he said.