Trade licenses have to be obtained for businesses and trades set out in by-laws drafted as per section 149 of the Pradeshiya Sabha Act No.15 of 1987 and the Local Authorities (Standard By-Laws) Act No 6 of 1952.
Trades that should obtain Trade Licenses.
| Registration of mortgages. | Soft drink factories. |
| Utilization of public grounds. | Prevention of malaria and eradication of mosquitoes. |
| Driving vehicles etc. | Tactile and Infectious Diseases. |
| Preaching in the streets. | Public baths. |
| Prohibition and illegal acquisition. | Laundry. |
| Carrying out work. | Cattle. |
| Garbage treatment. | Destruction of birds and other animals and flowers. |
| Living beyond the size of the house. | Prevention of animal cruelty. |
| Lodges. | Killer sheds. |
| Activation of gramophone loudspeakers etc. | Public Markets. |
| Hotels. | Water supply. |
| Rice shop restaurants and tea or coffee. | Construction of wells. |
| Bakery. | Unsecured wells. |
| Dairy herds and milk trade. | Hairdressing salons and barber shops. |
| Sale of food. | Vehicles and Animals. |
| Ice factories. | Debt. |
In addition, licenses have to be obtained for dangerous and offensive trades declared as per the Local Authorities (Standard By-Laws) Act No. 6 of 1952.
To obtain this license, the application form provided by the Sabha should be duly filled and returned.
Fee
| Where the annual value does not exceed Rs.750 | Rs. 500 |
| Exceed Rs.750 but does not exceed Rs.1500 | Rs. 750 |
| Exceeds Rs.1500 | Rs. 1000 |
Procedure
- Handing over of applications to all businesses within the area of authority of the Pradeshiya Sabha.
- Collection of completed Applications.
- Checking validity of details furnished by the Applicant.
- Refering application for the Approval of inspector of Public Health.
- Conducting a Field inspection.
- Recommendation for the License when there are no shortcomings.
- The license is issued after recovering the License Fee.
When the approval of the public Health Inspector is not received.
- A letter will be addressed to the applicant highlighting the short comings in the Application.
- Pradeshiya Sabha should be informed after rectifying such short comings.
- After the spot inspection again, if the business has fulfilled all health regulations and conditions action will be taken to grant the approval for issuing the License.
When the Trade License is not obtained
- The owner of the business is informed to obtain a Trade License.
- If license is not obtained within 7 days from such notice, action can be filed in magistrate court.
Procedure of paying Industrial Taxes
- A application is handed over in free of charge to all the business places situated within the municipal limits.
- The applications are collected again.
- A tax up to Rs.1000.00 is levied on the basis of annual value.
- After the payment of taxes, a receipt should be obtained for same.
This Tax will be decided upon
- Annual value of the Business
- Output of Trade
- Profit Accrued
- Level of necessity of products supplied by the Trade.
| Where the annual value does not exceed Rs.750 | Rs. 500 |
| Exceed Rs.750 but does not exceed Rs.1500 | Rs. 750 |
| Exceeds Rs.1500 | Rs. 1000 |
When trade Taxes are not Paid
- A notice will be served on the owner of the Business.
- When there is no response by way of Payment to such notice a case may be filed in the Magistrate Court.
Payment of Business Taxes
Business taxes must be paid by any business for which license is not necessary.
This tax is imposed as per section 152 of the Pradeshiya Sabha Act No. 15 of 1982 based on the income of the preceding year.
| Income | Tax |
| When exceeding Rs. 6000.00 | None |
| When exceeding Rs. 6000.00 but less than Rs. 12000.00 | Rs. 90.00 |
| Exceeding Rs. 12000.00 but less than Rs. 18750.00 | Rs. 180.00 |
| Exceeding Rs. 18750.00 but less than Rs. 75000.00 | Rs. 360.00 |
| When exceeding Rs. 75000.00 but less than Rs. 150000.00 | Rs. 1200.00 |
| When exceeding Rs. 150000.00 | Rs. 3000.00 |
The tax can be paid after handing over the duly completed Application to the Office
After notifying a person of non-receipt of business tax by notifying them to pay the tax, they can report the matter to the court if they do not pay the tax again.