Additional fees for business license | Discussion with business owners in KL

About 30,000 business operators in Kuala Lumpur will soon have to fork out additional fees as they will now have to apply for premises licenses from Kuala Lumpur City Hall (DBKL).

The costof the license’s ranges from as low as RM200 per unit to RM7,000 for buildings taller than five stores containing offices.

For instance, if a tuition center has taken up six floors of space in an office complex, it would have to pay RM7,000 for the premises license. If it rents only one unit in the complex, the license would cost RM200.

DBKLLicense and Petty Traders Management Department director Ibrahim Yusof said the fees would include non-regulated businesses such as clinics, medical centers, banks, salons and boutiques, tuition centers, saying it would cover everything that is commercial in nature.

The purpose is to regulate these businesses, to compile a database and for our planning purposes, he said.

Sometimes, there are too many clinics or banks in one neighborhood, so with our database, we can stop any more clinics or banks from opening there, Ibrahim said.

We also want to ensure there are no illegal businesses operating under a different facade. You could say we are carrying out a census to collect this information, he added.

According to Ibrahim, a circular had been sent out to the relevant business associations informing them of the move.

However, in spite of the circular saying it was effective Jan 1, 2016, Ibrahim said it would not be enforced yet.

“We had five meetings with the relevant stakeholders last year and have asked them to inform their members to startapplying for the licenses,” he said.

Ibrahim said the move to charge for a premises license was not revenue based but to regulate the businesses.

“It is really not that expensive,” he said.

However, the move has not gone down well with business owners in the city.

“It is very bad timing. My business is already down 30% and my landlord increased the rent last year,” said a beauty salon owner who wished to remain anonymous.

“I am struggling with expenses, and the GST and weaker currency have resulted in having to pay more for beauty products,” she said.

Dr K. Madhu, who runs a clinic in Segambut, said judging from the rates, he would have to fork out RM400 for his premises license.

“It is not a problem if business is good, but my business has gone down by 40%.

“My patients have told me they now prefer to go to government hospitals because medicines cost too much,” he said.

Meanwhile, Cheras MP Tan Kok Wai and Segambut MP Lim Lip Eng have expressed displeasure over City Hall’s move to charge premises license.

The MPs said they would write to the Kuala Lumpur mayor to dissuade him from implementing the new fee.

Source: thestar.com.my