JMC incurring revenue loss on illegal operation of over 15000 street vendors

The Jammu Municipal Corporation (JMC), which is working to revamp its revenue collection model by imposing development cess and various types of taxes on citizens, has been suffering huge revenue loss due to illegal operation of over 15000 street vendors on city roads, as only 450 vendors obtained valid licenses.

As per officials sources over 15000 street vendors are operating across all 75 JMC wards of the city while just 450 street vendors are so far registered with the corporations and paid the mandatory registration fee.

The illegal street hawkers not only incurring revenue loss to the government but also become a huge hindrance for smooth traffic movement and became a security concern for authorities.

Moreover, as per municipal law, an important condition of the license is that the street vendor cannot stand at one place anywhere, but these hawkers permanently occupied meanly entity who have taken the license follow the conditions fearing its cancellation, but the hawkers who do not have the license work unhindered at one place.

Municipal corporations claim to impose fines in the name of action on unlicensed hawkers, but during anti-encroachment campaigns, these hawkers often run away with carts from one place to another to avoid action.
According to an estimate, if the corporation is able to collect license fees from 10,000 hawkers, it can raise Rs.45,000,000 per year, while at present the corporation is collecting an estimated Rs.2,025,000 per year from these hawkers.

Senior officials said that at present a survey is being conducted to find out the total number of street vendors in the city. He further added that at present, the corporation is collecting a fee of Rs.4500 per year from the license holder but it was noticed that many street vendors cannot pay in one go so the corporation is mulling to break the fee on a monthly, quarterly and half yearly basis.

Rahul Yadav, Commissioner JMC said that Rehari operation came under street vending act , which earlier was not implemented in Jammu and Kashmir due to article 370.

“As per the act, a committee has to be constituted, from which third party engaged to done a survey to identify vending capacity of city, number of vendors besides identifying vending zones,” he said adding, “An agency has been hired to complete the task and exercise in all wards going on to identify the vending capacity as well as identify vending zones.”

He further added that exercise is underway and until it completes, JMC is not issuing new licenses.