
“Despite numerous representations to the government and district administration and press releases in the local media highlighting the plight of business community due to illegal taxation, the government of the day is still in deep slumber”. So reads a shocking public statement by Dimapur Chamber of Commerce and Industy (DCCI) on August 31. In another of the series of statements against the perennially dreaded and growing and rampant illegal taxation in Dimapur, DCCI has accused both the top echelons of the government in Kohima as well as the district administration in Dimapur of inaction. Those indulging in rampant tax collections in Dimapur include not only around nine political outfits but including the civic body(DMC), law enforcement(police and excise), geology & mining, sales tax, veterinary & animal husbandry besides hordes of other so-called voluntary organisations with lofty ideals of “changing society and making it a better place to live” etc. The DCCI has also warned that state and district administrations that if the continuing rampant and multiple taxations are not stopped, then it will have no option but to react with closure of shops and business houses in Dimapur in protest against the government turning a blind eye to the plight of the business community. The curse of illegal, rampant and multiple taxation has damaged the business environment and put many enterprises out of business. Most tragically, these collection rackets in Dimapur have attained some legitimacy as desperate and some helpless public are compelled to adopt a bizarre alibi of “one tax, one government”. Tax collection is initiated at check gates the moment a goods-laden vehicles enters Dimapur from outside. It is a fact that trucks carrying goods from outside, loathe entering Dimapur. Illegal and multiple taxation has compelled many transporters to unload goods at Guwahati. Such frequent loading and unloading exposes most fragile items to damages. The biggest loser of all is the end user, the poor and helpless customer. Ignorance about this issue only worsens the matter. Road tax is imposed on trucks and the amount rises depending on number of wheels. Goods are then taxed as whole and later when they are unloaded, the receiver has to pay godown tax. After the goods are despatched to shops, they are then taxed separately item wise. The state actors on the other hand also impose forest royalty on marble, granite, wood products for which GST have been paid; and sales tax as applicable etc. These activities have earned Dimapur and the state a very dubious distinction as the extortion capital as it is also the base for many other outfits. According to DCCI, price of items in Dimapur have risen abnormally and are costlier than those at Khatkhati or even Kohima. In the golden years till the late 80s, Dimapur was not only the fastest growing city in the north east but also the most favoured destination of many entrepreneurs from outside. The policy of wooing investors from outside was already in existence in Dimapur till the late 80s. The state government has consistently ignored this issue, over which reams have been written over several years where public have taken out protest marches, held massive rallies and submitted representations, memorandums, ultimatums etc to the state government. Unless the government of the day is clear about its responsibility in promoting not only business but rule of law, it will be culpable of lending a hand in creating a chaotic environment detrimental to the future.
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