Delhi Traders Relieved as MCD Simplifies Licensing, Fixes Fee at 15% of Property Tax

The Municipal Corporation of Delhi (MCD) today approved a landmark reform aimed at providing significant relief to traders and strengthening the Ease of Doing Business framework in the Capital. In a major decision passed in the MCD House, the General Trade/Storage License (GTL) issued under Section 417 of the DMC Act will now be subsumed within the Property Tax payment system, eliminating the need for a separate application or license document.

With this decision, traders and business owners will now be able to pay their trade license fee simultaneously with their annual property tax. The payment receipt itself will carry an endorsement treating it as a valid General Trade/Storage License, subject to compliance with pollution, fire safety, and other statutory norms required by concerned authorities.

 Delhi Mayor  Raja Iqbal Singh said that this reform marks a major shift towards transparency and citizen-centric governance. He noted that “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 further added that “MCD stands committed to supporting honest taxpayers and ensuring that governance becomes smoother, fairer, and more efficient for everyone. This move will reduce compliance burden without compromising safety norms or revenue responsibilities.”

Under the new system, the license fee has been fixed at 15% of the property tax applicable to the premises. This replaces the earlier complex structure dependent on trade type, area, and locality category. Data analysis shows that this revised model is revenue-neutral while bringing fairness and predictability for all categories of traders.

The reform will also significantly reduce the need for field inspections by delinking license fee assessment from multiple parameters. This will curb rent-seeking opportunities and promote a trust-based self-declaration mechanism.

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