bmc

1. Designed by Kamlesh Barot
HRAWI~~BMC
• Meeting with Mr. V. Ranganathan, Municipal
Commissioner, Urban Development and
Tourism Secretary of Government of
Maharashtra, Managing Director, MTDC on
Friday, 19th
January, 2001 at Hotel Marine
Plaza, Mumbai.

2. Designed by Kamlesh Barot
Introduction
• 15,000 hotels and
restaurants in the city
of Mumbai and nearly
1,00,000 through out
the State of
Maharashtra.

3. Designed by Kamlesh Barot
Employment Generator
• 1,00,000 persons
employed in Mumbai
• Nearly 5,00,000
persons are dependent
• In Maharashtra, about
50,00,000 persons are
being supported by
this Industry.

4. Designed by Kamlesh Barot
Role of Hotels & Restaurants
• Bulk demand for
products of over 100
industries.
• Before imposing taxes,
rates, duties and fees,
authorities to realize
significant role played
by the hotel and
restaurant sector.

5. Designed by Kamlesh Barot
Not a Leisure Industry
• This Industry is not a
leisure industry
• Grade I hotels and
restaurants are a very
meager percentage of
the total number of
licenses granted by the
local authorities.

6. Designed by Kamlesh Barot
Property Taxation
• Not a single representative of the Industry
in new property tax system meeting.
• But distinct entity for levy of property tax
• Ratable value, to Capital value of the
property based upon the market value as
determined by the State Government for the
purposes of levy of Stamp Duty.

7. Designed by Kamlesh Barot
Draw backs of Proposed System
• 1) Value based system is subjective.
• 2) Unstable and volatile depending on the
market forces.
• 3) On buying and selling of property is a
notional value base for taxation.
• 4) The variation in the ready reckoner, will
disturb tax collection of the Corporation.

8. Designed by Kamlesh Barot
Draw backs of Proposed System
• 5) The ready reckoner valuation will lead
to litigation.
• 6) Will stagnate growth, re-divert
investment to other industries, & effect
employment generating capacity of hotels.
• The Association suggests a discussion
before categorizing hotels and restaurants as
a distinct class for taxation.

9. Designed by Kamlesh Barot
Licensing
• 1. Bombay Shops & Establishments Lic.
• 2. Health Club.
• 3. Beauty Parlour.
• 4. Book Shop.
• 5. Eating House.
• 6. Lodging House Lic.
• 7. Sale of liquor on the premises.
• 8. Gradation Certificate for Restaurant.

10. Designed by Kamlesh Barot
Licensing
• 9. Sale & Distribution of Eatables Lic
• 10. Neon Sign Licence (per sign board).
• 11. Beauty Parlour Trade Licence.
• 12. Factory Lic for Grinders, Deep Freezers.
• 13.Prevention of Food Adulteration Lic.

11. Designed by Kamlesh Barot
Two Licenses
• Out-dated and obsolete licensing structure
to be rationalised, by introducing just two
licences:
• 1. Hotel Licence 2. Restaurant Licence.
• The various Departments, which are
involved in granting such licences can
internally put into operation a system of
checks and balances.

12. Designed by Kamlesh Barot
Disadvantages of many Licenses
• 1. High administrative
cost by BMC.
• 2. Waste of time,
money and energy by
the entrepreneur.
• 3. Scope for
subjectivity and mal
practices.
• 4. Elaborate
inspection systems for
each licence.
• 5. Elaborate
assessment system for
each licence.
• 6. Rise of roadside
unlicensed food.

13. Designed by Kamlesh Barot
Licence Fees.
• 1. The Fees have gone
up manifold since the
last five years.
• 2. No other Industrial
activity is taxed to this
extent by the BMC, is
discriminatory.
• 3.Trade Refuse
charged twice. Nine
times Eating House
Licence Fees hiked
still per basket Rs. 50
for collecting garbage
from hotels, plus
Sewerage Tax with
Property Tax.

14. Designed by Kamlesh Barot
License Fees
• 4. Food Stalls without
any contribution to
BMC get water and
electricity and garbage
clearance.
• 5. Fees collected
retrospectively from
1995. Hotels have not
revised their tariff,
additional burden for
prior years will affect
the smaller Hotels and
Restaurants

15. Designed by Kamlesh Barot
Water Charges
54 categories
• 1) Lodging Houses.
• 2) Eating House.
• 3) Eating House with
Beer / IMFL.
• 4) Approved Hotels.
• 5) 4 & 5-Star Hotels.
• Hotels declared
industry by the State
government since
April, 1999. BMC
continues more than
the industrial tariff.

16. Designed by Kamlesh Barot
Water Charges
• No justification of water charges on star
categorisation.
• BMC is collecting a Water Tax and Water
Benefit Tax along with the Property Tax.
This duplication must be abolished.
• Like electricity, water charges should be
based on quantity supplied with a graded
slab system.

17. Designed by Kamlesh Barot
Neon Sign
Name Plates
– Hefty fees charged
for neon signs,
even for an
identification.
Security deposit in
multiple of the
neon sign fees
based on the size
of the hoarding.

18. Designed by Kamlesh Barot
Prevention of Food
Adulteration Act
• Corruption prone Inspection both by FDA, State
Government as well as Health Department, BMC.
• Hotels obtain Food Handlers Certificate issued by
very few specified hospitals.
• The Association, requests that procedures under
the Prevention of Food Adulteration Act be
streamlined and Food Handlers Certificates be
accepted, issued by designated Hospitals both
public and private

19. Designed by Kamlesh Barot
The Development Control
Rules
• 1) Provision of parking space.
• 2) Commercial zoning permissions.
• 3) Change of User.
• 4) Usage of Open Space.
• 5) Erection of Awnings.
• 6) Usage of Basement and Terrace.
• 7) Minor Repairs and Renovations.
• 8) Erection of Loft /Mezzanine Floor.
• 9) Beautification around Hotels and Restaurants.