Nagaland Post

Elephant in the room

September 15, 2019 | by admin

 Some things never change and this is true with regard to the persistent and deeply anguishing experience among business, trade and citizens in Nagaland and in particular, in Dimapur, about the imposition of illegal tax which appear to be growing with the increase in the number of groups. It may be noted that several organisations had in the past decades, lamented about unchecked rise of illegal collections which have become the biggest cottage industry in the state. The issue has been consistently highlighted by Dimapur-based civil society organisations such as Naga Council, ACAUT then Public Action Committee(PAC) among others. Whether illegal or unauthorised, the taxes are being collected/imposed by several ‘parallel governments’ including departments of the state of Nagaland. The problem is not about single taxation but multiple taxations to multiple groups at the check gates and presently, some have shifted their “gates” at Khatkhati. By multiple taxation, CSOs explained that a truck laden with goods bound for Dimapur, has to pay anything from Rs.15,000. The rate could increase if the truck has above six tyres such as ten, 14 or 16. This is known as transport tax. Again when the taxed truck unloads, the receiver will have to pay godown tax. Later when the goods reach the stores, shops, each item is also taxed. Over and above, there is also syndication of business. If a dealer wants to buy an item, he or she will have to buy it through a ‘dealer’ and not from any other un-authorised source(s). At a public rally against unabated taxation and syndication in 2018, one speaker expounded on syndication. He spoke of ‘second hand clothes’ syndicate which nets the ‘dealer’ with around Rs.72 lakhs a year. There is also a ‘pan patta’ syndicate comprising of six dealers who collect Rs.1500 per basket and the trade involves an income of around Rs.54 lakh a year. There is also a ‘veterinary’ syndicate that collects fees on all livestock and eggs imported. Six dealers then earned around Rs.62 lakh annually. Another state government department levies tax of Rs.350 per truck carrying minerals besides Rs.2800 for the goods. The maths would reveal how prices of every item triple due to these taxes which the buyer has to pay. This is not a very inspiring scenario or situation, if the idea has been to promote business and economic growth. While an overwhelming majority of states in the country are experiencing fast paced development of infrastructure that help in the spurt in economic activities; the situation in Nagaland remains frozen in time with ‘demands’ and ‘rights’ greatly slowing down the pace. People are suppressed into silence and this fear virus is contagious in the absence of authority that prevents its spread. The majority choose to remain silent. Perhaps they feel that silence can convey supposed neutrality. Their muteness say much about their moral fibre but yet, they believe that not taking sides would keep them in favor with others. ACAUT Nagaland has boldly made public the ground reality and demanded that the government put an end to the people’s misery. PAC had even demanded enactment of stringent laws to ensure that those arrested are not set free due to laxity. The state government has to bell the cat and ensure that it fulfils its constitutional obligations and not shield its wilful neglect by using solution as the red herring.

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