Waste collection fees likely to go up for Dhaka north residents

Highlights

• Tk5,000 application fee
• Tk10 lakh security deposit and Tk10 lakh annual fee
• A company can apply for only one ward
• Collectors can charge Tk100 from household
• Waste collection trade worth Tk500 crore in two Dhaka city corps

The Dhaka North City Corporation has moved to make the enlistment of waste collection providers costlier – Tk10 lakh deposit and Tk10 lakh yearly fee – which is likely to increase the city dwellers' spending eventually.  

Both the security deposit and the yearly fee for the newly formed 18 wards has been set at Tk5 lakhs.

In a recently issued circular, the north city corporation has sought application from companies interested to get enlisted. The city corporation has also added an application fee of Tk5,000, to be pay-ordered to the corporation. After the registration process, the selected companies will be required to pay the security deposit and the yearly fee while the companies will collect fees from the households.

The Dhaka South City Corporation, on the other hand, takes Tk12 lakh annual fee with no security deposit.   

However, both city corporations are currently collecting a 3% tax for cleaning purposes of the 12% municipal tax.

The Dhaka South, which started outsourcing waste collection from 2020, failed to bring order to waste management, instead it added more cost for city Dwellers.

While the south enlisted their waste collectors through tenders, the north has chosen to contract out the service through applications.

"City corporations in Rajshahi and Khunla do their waste management themselves, but the Dhaka city corporations are not providing the service on their own despite collecting taxes," town planner Adil Muhammad Khan, executive director of the Institute for Planning and Development (IPD) told The Business Standard.

"Now if the waste collection turns into a business, on one hand, the cost for the common man will increase while the business will be further promoted," he said, adding, "Such a system is created to protect the interests of the circle of councillors and incumbent leaders."

Dhaka's two city corporations collect around Tk200 crores in tax for cleaning from the residents every fiscal year. However, instead of directly collecting waste from their homes, they have once again increased the cost burden.

The waste collectors take a monthly fee ranging from Tk100-300 from every household.

To apply for the enlistment of the north's waste collection, companies will have to provide proof of their experience, bank solvency, owning sufficient vehicles and security. If multiple applications are received from one area, a selection committee will be tasked to make the final selection. The fee for collecting garbage from houses has been set at Tk100 while in the 18 new wards the fee is Tk50.

The waste collectors are saying, with the added expense of some Tk25 lakhs, it will be tough for them to provide the service for a monthly fee of Tk100 from households.

The fee may go up to Tk150-300, they said.

The south city corporations fixed the monthly fee of Tk100 for households and Tk30 for shops. Even clashes took place over garbage collection in various wards as in most of the south wards more money is charged than the fixed monthly fee.

Nahid Akhtar Lucky, president of Dhaka North City Corporation's waste collection companies, told TBS that they have suffered losses in several cases.

"There have also been incidents of local councillors evicting waste collectors from various places. Now, the new registration process will cause more suffering. We will be forced to increase the fee from Tk100 to Tk200," she said.

"Waste management has become worse in Dhaka south, after they introduced a similar system," she added.

Mofizur Rahman Bhuiyan, Waste Management Officer of Dhaka North City Corporation told TBS that they have taken the measure to bring waste management in order.

"Action will be taken against people who do not follow the rules of the city corporation. We will also take action against complaints of charging extra fees," he added.

Household waste collection business worth Tk500 crore

Of the total 129 wards in two Dhaka city corporations, 36 wards are new. There is no specific information about the amount of money collected by various organisations for collecting waste from homes and restaurants.

However, based on information provided by the two city corporations, city dwellers and waste collectors, the business generates nearly Tk40 crore per month and nearly Tk474 crore a year.

Besides, according to the Bangladesh Restaurant Owners Association, there are about 15,000 restaurants in the capital. An average of 1500 taka is collected from the restaurant which amounts to Tk2.25 crore per month and Tk27 crores per year.

General Secretary of Bangladesh Restaurant Owners Association Imran Hasan told TBS, "Tk1000 to Tk10000 is charged for waste collection from each of our restaurants. The city corporation is also collecting tax while we are having to pay for waste disposal. Besides, the amount goes up every few days."