A perennial challenge

While public welcome the recent order issued by the home department for closure and removal of check posts across Nagaland in order to eradicate rampant and illegal taxations, there are still some lingering doubts on whether the order can be strictly implemented. The doubts arise since the government has shown that it just doesn’t have the political will to enforce such orders on a long term basis. A concerted and determined effort needs to be done to eradicate the terrible menace of illegal cash collections going by the term-‘taxes’ or ‘membership fees’ or whatever name-which those involved choose to justify such illegal collections. In addition to the inter-state check gates, numerous other check gates have been erected that have absolutely no constitutional or legal justification. This newspaper has been highlighting reports of such activities and also a series of comments in this column during the past decades. There had been several exercises conducted by the administration against illegal tax collections in the light of hue and cry from public which led to government ordering the dismantling of police check gates at several points. The state government had in 2009 and later 2012 issued ban on illegal collections at check gates and along highways. In the past, there were some unions/associations that obtained stay from the court by successfully exploiting the loopholes on technicalities. In this regard, the government has to also prepare itself to fight the case(s) in court so as to thwart any effort to use legal means to circumvent its order. This may be seen from the past when the Gauhati High Court Kohima Bench on June 3,2014 dismissed 11 petitions against the ban order. What is of serious problem however, are numerous organizations including government departments collecting various taxes from transport trucks at the inter-state check gates and various other check gates erected within Dimapur town. Trucks are asked to pay sales tax on items whereas, as per the GST Act, such local taxes are no longer valid as GST subsumes all taxes. These collections are multiple, rampant and even as flimsy where trucks are charged for amounts depending on the number of tyres. The more the tyres, the more the tax amount. Tax collections in Dimapur have become a thriving ‘cottage industry’ which emerged in the late 80s and rose to menacing proportion from the 90s onwards. The other question being raised is whether collections by various government departments including municipal and town councils, except police, should also be brought under the ambit of the ban? Thirdly, whether the purpose of the ban- eradicating illegal collections by all and sundry should be a top priority other than focussing only on check gates? Such collections shoot prices of all items skywards. It appears that the measures undertaken against such activities have fallen short of the desired objective as they were not long term. In fact, due to the failure of the administrative and enforcement agencies to pursue the objective on a long term basis, these activities have somehow managed to spring back. Not only check gates but also syndication of market and various unjustified fees that are being collected under duress, have to be eradicated if Nagaland wants to attract outside investors.