The Chennai Corporation has decided to rationalise the trade licence framework in the city, involving considerable increase in the fee for some groups.
Rationalisation of the rate, which involves creation of revised schedules of industries, is expected to increase the trade licence fee collection. The Corporation currently earns Rs. 9 crore per annum through collection of the fee.
The existing trade licence rate in the old Corporation limits is based on the area taken up by the commercial building used for carrying out the trade. In added areas such as Tiruvottiyur, Manali, Madhavaram, Ambattur, Valasaravakkam, Alandur, Perungudi and Sholinganallur, the fee differs with the type of trade. After rationalisation, the fee for the entire 426 sq km of the city will be calculated based on the area (in square feet) of the commercial building.
The rationalised framework is likely to have an impact on the livelihood of over 1.6 lakh traders. Once the new rates are implemented, many categories of traders, including flower vendors, will have to acquire a trade licence. The number of traders covered under the trade licence net will increase considerably from the existing 39,000 traders.
Traders’ associations at a meeting organised this week opposed the new proposal. “Livelihood of many small-scale traders will be affected. Traders who have been paying Rs. 250 in areas such Alandur and Ambattur will have to pay more than Rs. 1,000 as trade licence fee after rationalisation,” said K. Mohan, general secretary of Tamil Nadu Vanigar Sangankalian Peramaippu.
As many as 542 trades carried out in the expanded city will be covered under the rationalised trade licence system. Earlier, over 185 trades in the old city limits were covered under the trade licence fee framework.
“We have requested the Corporation to exempt traders with area less than 300 sq. ft. from getting a licence,” said A.M. Vikramaraja, president of the Tamil Nadu Vanigar Sangankalian Peramaippu.
Last year, the civic body decided to regulate the system after analysing data on 1.6 lakh traders. As each of the merged local bodies has a different list of trades covered under the licence fee framework, the Corporation’s initiative will offer clarity on the system.
