[BREAKING] Plea filed before Bombay High Court seeking waiver of property tax, renewal fees, license fees payable by retailers during lockdown

A plea has been filed before the Bombay High Court seeking waiver of the property tax, renewal fees and license fees which are payable by retailers in the State of Maharashtra for the entire period of lockdown starting from March 2020. .The petition filed by the Federation of Retail Traders Welfare Association, cited heavy losses, financial instability and mass unemployment faced by retail sector dealing in non-essential items as a direct consequence of the COVID-19 pandemic and the lockdown..The petition filed through advocate Dipesh Siroya arraigned the State of Mahrashtra, Brihanmumbai Municipal Corporation and Ministry of Revenue and Forest, Disaster Management, Relief and Rehabilitation as respondents..The petitioner highlighted the various lockdown measures imposed by the State and Central governments since March 23, 2020. A recent such order was issued in April 2021 by which the Maharashtra government had enforced a curfew in the State till May 1.The order clarified that all shops except essential service providers have to remain closed though e-commerce service providers were permitted to provide essential service. The petitioners submitted that while they supported the government lockdown, in return there was no reciprocal subsidy for closure of trade of over 13 lakh retailers having approximately 45 lakh employees dependent on the retail industry. .The retailers have to pay salaries, minimum electricity, rentals, property and other statutory taxes even if businesses are shut due to lockdown. "With the days of lockdown continuing to extend in the State, it is getting increasingly difficult for retailers to retain employees and see their businesses afloat. There is a need to inject capital into the industry," the petition stated.Due to the lockdown, the retailers are not able to avail profits as their only source of earning is their consumers, whom they rely on for business purposes, the petitioner submitted. .The federation claimed that they wrote several representation for tax waiver to various authorities but did not receive any response yet. .Various small-scale businesses get the required support but retail shops do not as they are not included in the definition of MSMEs and hence are left high and dry despite being small businesses, it was pointed out. Since they are not part of any formal industry they are not part of any scheme or relief measures..The federation stated that the payment of license fee, renewal fee, property tax, etc are reciprocal obligations and are payable only when the members of the federation operate their business. Hence, retailer are entitled to waiver of the statutory payments as such taxes are not applicable to e-commerce industries.Interestingly, the petitioner also alleged that e-commerce industries are violating guidelines issued under the Disaster Management Act to which the respondent authorities have totally closed their eyes. .In view of the above, the petitioner prayed for the following reliefs:Steps against e-commerce industry for violation of directions of the "Break the Chain" order. Directions to not take steps for recovery/collecting taxes which are imposed under Mumbai Municipial Corporation Act and Maharashtra Municipal Council Act.Directions to enable retail industry of the State to cover the loss suffered for the entire period of lockdown from March 23, 2020 till the lockdown continues.In the alternative, directions to waive the taxes which are imposed under Mumbai Municipial Corporation Act, and Maharashtra Municipal Council Act, upon the retail sector of the state, for the entire period of Lock Down.