HCSTSI for preventing municipal corporations from harassing traders

HYDERABAD: President of Hyderabad Chamber of Small Traders & Small Industry (HCSTSI), Muhammad Saleem Memon, has taken immediate notice of the complaints received from traders of Latifabad and announced steps for resolving the issue.

The traders have raised concerns that representatives of both the Hyderabad Municipal Corporation (HMC) and the Town Municipal Corporation (TMC) are collecting taxes separately for the same signboards, causing severe inconvenience to the business community.

To address this matter, the Chamber has formally written to the Additional Chief Secretary of Local Government Sindh, Syed Khalid Hyder Shah, requesting immediate intervention. The letter urges the authorities to prevent both departments from harassing traders until the court delivers its verdict on the ongoing legal proceedings.

The Chamber has demanded that, once the issue is resolved, all tax collection regulations and revised tax rates be shared with HCSTSI beforehand to ensure transparency and to take traders into confidence, preventing any future disputes.

Expressing deep concern over the situation, President HCSTSI stated that although the case is currently under judicial review, traders are still being subjected to undue harassment. He emphasized that the dispute between the two municipal bodies is unfairly burdening traders, making it imperative to find an immediate resolution.

The Chamber has also appealed to the Mayor of Hyderabad, Commissioner Hyderabad, Deputy Commissioner Hyderabad and other relevant authorities to take urgent notice of the issue.

The Chamber has suggested that officials from both municipal bodies should be brought to the table to discuss and resolve the matter amicably.

President Saleem Memon further stressed that until the court reaches a final decision, both municipal bodies should refrain from pressuring and intimidating traders. He reaffirmed the Chamber’s unwavering commitment to protecting the rights of traders and assured that all necessary steps would be taken to resolve the issue.

The Chamber also highlighted multiple complaints from traders, who reported being threatened by municipal representatives with the removal of their signboards and subjected to inappropriate behaviour.

Saleem Memon strongly condemned such conduct, stating that this approach by municipal authorities is unacceptable and must be stopped immediately. He urged all concerned authorities to handle the matter legally and in a peaceful manner, rather than resorting to coercion and intimidation.

Additionally, the Chamber pointed out that the signboard fee schedule issued by the municipality in 2021 was highly unrealistic, imposing a fivefold increase, which was an outright injustice to traders.

The President stated that such an unjustified hike should be rationalized, as exorbitant taxation not only places an undue financial burden on traders but also fuels corruption.

He highlighted that inflated tax demands often lead to illicit settlements at reduced amounts, undermining transparency and trust in the system. He strongly demanded that tax rates be determined on realistic grounds to prevent undue hardship for traders and eliminate opportunities for corruption.

The Chamber has demanded a complete and public disclosure of all contracts related to signboard holdings over the past 20 years. This transparency is essential to determine the actual contract values, the extent of concessions granted and the real revenue received by the municipal authorities.

Unfortunately, collusion between municipal representatives and contractors has led to massive financial losses amounting to billions of rupees for the government.

Copyright Business Recorder, 2025