Factory license fee will now be 5% of the annual property tax, and both can be paid through a single portal
“The integration of factory license and property tax will not only provide relief to entrepreneurs but will also mark a historic step towards ending the ‘Inspector Raj’,” said Mayor Sardar Raja Iqbal Singh.
The Municipal Corporation of Delhi (MCD) today took a historic step towards promoting Ease of Doing Business. At Civic Centre, Mayor Sardar Raja Iqbal Singh launched the integration of the Factory License Fee Module with the Property Tax Portal. With this move, MCD has simplified the process of issuing factory licenses. Now, industrial units operating in industrial areas will no longer be required to obtain a separate factory license from MCD.
Speaking on the occasion, Mayor Sardar Raja Iqbal Singh said that MCD is consistently taking concrete steps to promote Ease of Doing Business. The integration of factory license and property tax will not only provide relief to entrepreneurs but will also be a historic move towards ending the ‘Inspector Raj’. Entrepreneurs will now benefit from a simple, transparent, and time-bound process, giving new momentum to the industrial development of Delhi.
Standing Committee Chairperson, Satya Sharma, said that this step reflects the foresight of MCD. She stated, “Now industries will no longer have to go through separate procedures and inspections for licenses. A single portal will not only increase transparency but also provide convenience and save time for industries. The Corporation’s aim is to provide a simple and reliable environment to the industrial sector.
It is worth mentioning that earlier, separate applications and fee submissions had to be made through different portals for factory license and property tax. Under the new system, both services are integrated and will be available through a single-window application. The factory license fee will now be 5% of the annual property tax, and both payments can be made on the same portal. Upon payment of the fee, the deemed factory license will be auto-generated, eliminating the need for separate inspections.
Under the new system, units located in re-development or confirming areas will be recognized on the basis of MSME Registration Certificate or allotment / lease letter issued by GNCTD/DSIIDC, which will be deemed MCD factory license.
The factory license fee can now be paid along with the property tax in one go. This arrangement will reduce the compliance burden on industries as both tax/fees will be deposited together. The new system will relieve industries from factory license inspections and unnecessary complexities. Industrial units will now only have to comply with pollution, fire safety, and other statutory approvals, which will be the responsibility of the concerned unit/factory owner. Additionally, the factory license fee will now be treated as 5% of the property tax and will be payable annually along with the property tax.
Currently, there are about 30,000 active licenses; this new system will increase the number and also enhance the revenue of the Corporation.
