CHENNAI: CPM state secretary P Shanmugam on Wednesday called on the State government to reconsider its recent order mandating trade licences, charging up to Rs 30,000 fee, for a wide range of small-scale and service-based businesses operating in village panchayat areas.

In a statement, he said the Government Order titled Tamil Nadu Village Panchayat Rules for Granting Trade Licences – 2025 requires all those engaged in 48 types of trades and 119 service-related occupations to obtain licences to continue their operations.

“This order, which brings even the smallest roadside shops within the ambit of licensing, will gravely impact the livelihoods of lakhs of poor families,” he said.

Shanmugam pointed out that many rural households sustain themselves by running petty shops—often out of their homes or small kiosks. “A large number of these are run by women, including single mothers, widows, and elderly women who are unable to engage in physical labour,” he said.

He further noted that the licence fees prescribed under the new rules range from Rs 250 to Rs 30,000, a burden he said could plunge already vulnerable families into further economic hardship.

Urging the government to exempt micro and small enterprises from the ambit of the order, he appealed for amendments that would restrict mandatory licensing to larger commercial establishments. “The government must prioritise protecting rural livelihoods over imposing unaffordable regulatory burdens,” he said.