Small shop owners in Chennai face high license fee
Those running hair salons, tea shops and selling handicrafts are also facing the heat
Greater Chennai Corporation (File Photo)
CHENNAI: Several shop owners and small traders in Chennai are upset with the Greater Chennai Corporation, which has started collecting revised trade licence fees for the commercial establishments. The worst affected are owners of pet shops, for which the license fee had jacked up by a whopping 7,400%. (Rs 20 to Rs 1,500)
Those running hair salons, tea shops and selling handicrafts are also facing the heat. The irony is that larger commercial houses, particularly jewellery shops, are not affected much.
As per the TN Urban Local Bodies (amendment) Act 2022 and 2023, the GCC revised the fees collected from traders and manufacturers for issuing and renewal of trade licence. On July 18, 2024, the local body issued the schedule with proposed licence fees applicable to any industry or factory or enterprise involved in the production of goods, which is not licenced under the Factories Act, 1948 and Industries (Development and Regulation) Act, 1951.Though several council members opposed the resolution, the GCC implemented it.
“We’re still reeling from the pandemic-induced financial loss. And now, the GCC has increased the fee,” said V Sathiabalan, a hair salon owner. “We’re not refusing to pay, but the local body is adapting discriminatory practices.”
For instance, the license fee for hair salons is Rs 2,500, which is an increase from Rs 200 for non-AC and Rs 500 for AC. “This is 400% more,” he pointed out. “However, jewellers are enjoying privileges as they pay only Rs 1,500 as licence fee for a 500 sq/metre shop. The Corpn should fix a fee based on the type of trade and the size of the shop to prevent squeezing the small traders.”
When contacted, a senior GCC official said that the revision of licence fees was a policy decision which was accepted by the council. “The GCC conducted meetings with all trade and shop owners’ associations before implementing the revised fees. We heard their grievances and agreed to reduce the fees, but no representative from the hair salons approached us.”
