More than 2,00,000 small shopkeepers under the aegis of the Karnataka State Retail Beedi-Cigarette Merchants Association,which represents the Karnataka Chapter of the Federation of Retailer Association of India (FRAI), have been protesting across the state against various Municipal bodies bid to introduce ‘License Raj’. This is despite earlier assurance given by the government and authorities that the proposal for License Raj will be dropped and harassment against small traders would not be allowed.
The aggrieved retailers have been holding demonstrations in Mysuru, Hubli, Mangalore,Vijayapur among other cities, to voice their opposition against the proposed implementation of licensing regulation, despite earlier assurances against the same which will make it impossible for them to sustain their families. Shopkeepers in large numbers gathered in Bangalore today to carry out a demonstration against the draconian law.
The Karnataka State Retail Beedi-Cigarette Merchants Association strongly believes that the proposed regulation will be devastating for lakhs of small traders and their family members, who have already suffered humungous financial setbacks in the last couple of years and are barely managing to sustain livelihood in the given the high inflationary condition. It is to reemphasize that too many tobacco laws will only increase the scope of harassments and corruption by enforcement officials.
The Association is a body of over 2 lakh micro, small and medium retailers from across Karnataka. It also represents the livelihood of over 10 lakh poorest of the poor retailers and their families and is known for raising issues concerning their lives and livelihoods.
Explaining the concerns around the proposed draconian “License Raj” proposals, Mr. B. N. Murali Krishna, President, Karnataka State Retail Beedi-Cigarette Merchants Association, said, “On account of the provisions of the Prohibition of Advertisement and Regulation of Trade and Commerce, Production, Supply and Distribution Act, 2003, COTPA, our members are already being subjected to daily harassment by enforcement officials, who take advantage of their illiteracy and lack of awareness to extract gratifications. As per the proposed laws, tobacco product sellers will have to get a license, which will be renewed every year. In addition to that, multiple obligations on the part of the retailers, such as the display of license and maintenance of a suggestion book, along with heavy penalties in case of non-compliance,are being proposed.”
The Association believes that such measures will cause massive harassment to lakhs of poor and mostly uneducated microretailers at the hands of enforcement officials. It will also lead to a sharp increase the cost of doing business at a time when retailers are reeling under the aftermaths of the Covid pandemic.
Mr. Murali Krishna added that based on the past experience with other laws, the very act of getting a license will be challenging for small sellers, whodo not have the money to pay the fees and are not educated enough to complete the paperwork required for licensing. “More laws will also mean more opportunities for local officials to harass our members. Our Hon’ble Prime Minister and Hon’ble Chief Minister of Karnataka have taken several important measures to simplify processes for trading in Karnataka in the true spirit of ‘ease of doing business’ and ‘promotion of entrepreneurship’. However, the Urban Development Ministry and Municipal Corporation’s proposal to make licences mandatory for trading in tobacco products through the proposed laws its draconian clauses is in complete contradiction with the Prime Minister and Chief Minister’s vision for the state.”