MCCI calls for review of temporary commercial permits

MOKOKCHUNG, SEPTEMBER 10 (MExN): The Mokokchung Chamber of Commerce & Industry (MCCI) has urged the Mokokchung Municipal Council (MMC) to reconsider the practice of issuing special or temporary commercial permits to outside businesses for short-term sales in Mokokchung town.

In a representation to the MMC, the MCCI said such permits could adversely affect permanent businesses, particularly when temporary operators sell products already available through local establishments. The representation followed resolutions adopted at the MCCI Executive Council meeting on September 5. The chamber said the issue should be viewed in terms of the “long-term economic sustainability of Mokokchung” and the interests of businesses that maintain a permanent presence in the town.

According to the MCCI, permanent businesses contribute to the town through employment, rent, taxes, municipal and sanitation fees, licences and other statutory obligations. They also contribute to community activities through sponsorships, donations and support to local institutions. The chamber argued that Mokokchung's relatively small market has limited consumer purchasing capacity, meaning temporary sales events can have a disproportionate impact on permanent establishments selling similar products.

It said permanent businesses continue to bear expenses such as rent, salaries, electricity, taxes and other fees even when sales decline during temporary commercial events. If such events become frequent, the cumulative impact could become increasingly difficult for local businesses to absorb, it added. The MCCI clarified that it was not opposed to legitimate commerce, competition or economic opportunities in Mokokchung. However, it called for a distinction between short-term commercial activity and long-term economic development.

‘Bombay Make Up Bazar’ cited as example
The chamber cited the “Bombay Make Up Bazar” as a recent example of its concerns. According to the MCCI, the business operated in Mokokchung from August 18 to 28 under a special permit issued by the MMC and had a “significant adverse impact” on the local market, particularly on permanent businesses dealing in similar products.

The MCCI further stated that the MMC subsequently issued another special permit to the same temporary business, extending its presence from August 29 to September 5. The chamber said repeated permissions raised questions about the purpose and consequences of temporary commercial permits, arguing that outside businesses could access the local consumer market for a limited period without making the same long-term commitments as permanent establishments.

The MCCI said the experience should prompt the MMC to review its existing practice of issuing and extending such permits, adding that short-term permit revenue should not come at the expense of the confidence of the permanent business community or the long-term health of the local market.

The MCCI urged the MMC to adopt a precautionary approach and said temporary permits should not ordinarily be issued for activities that directly compete with existing permanent businesses. It suggested that such permissions should be considered only in exceptional circumstances where there is a compelling reason, a genuine unmet need or a clear benefit to Mokokchung's broader economic interests.

The chamber also called for consultation with MCCI before temporary commercial permits are granted, particularly where proposed activities involve goods or services already offered by permanent establishments. It said consultation would allow the MMC to assess prevailing market conditions and identify businesses and sectors likely to be affected, while stressing that such consultation need not amount to a veto over the municipal council's statutory authority.

The MCCI further called for a clear and transparent policy governing temporary and special commercial permits. Among other things, it proposed criteria covering the circumstances for granting permits, their duration and frequency, statutory compliance, safeguards against unfair competition, stakeholder consultation, and appropriate fees and conditions.

The chamber urged the MMC to refrain from granting temporary commercial permits as a matter of routine, consider them only in exceptional circumstances, consult MCCI before approval, formulate a consistent policy and review permits already issued in light of their broader economic implications.

Reiterating that its position was not against healthy competition or legitimate economic activity, the MCCI said its concern was to ensure a “level playing field” and the long-term sustainability of Mokokchung's commercial sector.