ISLAMABAD: The traders of the federal capital are bracing for another round of showdown with the Capital Development Authority (CDA) and this time over signboards fee.

Previously, the traders had become involved in altercation with the civic agency over charged parking in the markets, and the latter had to withdraw the decision.

After a lapse of almost seven years the civic body had decided not only to enhance signboard fees but also improve its collection mechanism, but the traders find the move hard to digest.

“The worst part of this new collection mechanism is that they have outsourced it to a band of unruly contractors,” said Ajmal Baloch, Central Organising Secretary of Traders Action Committee (TAC).

“The contractors just throw a bill of Rs25,000 or Rs10,000 on the face of shopkeepers and start pushing them for the payment,” he added.

Mr Ajmal Baloch has termed the unilateral increase in signboard fee by the CDA illegal.

He said that that the signboard tax had been raised from Rs10 per square meter to Rs40.

“We demand the enhanced rates be withdrawn immediately otherwise traders will not pay signboard fee till the restoration of old rates,” Mr Baloch said.

Meanwhile, on the other hand the CDA appears to be satisfied with the new collection mechanism as it has already collected around Rs20 million in three months compared to around Rs10 million it had collected in seven years.CDA had awarded contracts for charged parking and signboard fees collection to private parties.

The issue of charged parking backfired and after severe opposition from the traders the CDA had to withdraw the contract. That was why the officials are taking extreme caution in the collection of signboard fee.

Currently sponsored signboards fee is paid by any corporate company; illuminated signboards rate is Rs60 per square feet, while simple signboard fee is Rs20 per square feet.

“We are ready to negotiate and even reduce the rates to a rational level but it should be higher than what it was being charged in 1992,” said Hamza Shafqaat, director, municipal administration.

“Apart from the collections, the most important aspect of this drive is to reduce ‘visual pollution’, a term which they used for a battery of signboards at buildings,” he added.

Regarding the issue of outsourcing of collection mechanism to contractor, he said that the CDA had only three persons in this department to monitor and collect fee from around 70,000 shops, offices and restaurants, etc., in the city.

However, the CDA is likely strike a deal with the chamber of small traders as they were the main party in this regard.

Kamran Abbassi, president of the Islamabad Chamber of Small Traders said: “We have charged parking fee issue with the CDA as they will build a parking plaza in Jinnah Super market and charge fee for parking there.”

He said small traders had already given some suggestions with regard to increasing the rates gradually and improving the collection mechanism too.”

CDA is scheduled to meet all the groups of traders and business community in coming days to settle the issue once for all.