Nagaland Post

Persisting perennial problem

March 18, 2024 | by News Post

After Dimapur Chamber of Commerce and Industry(DCCI) warned that if the unabated multiple taxation, intimidation and summons on businessmen by various Naga political groups were not stopped immediately and if the state government and law enforcing agencies fail to take immediate steps to protect the business community before the situation spiralled out of hand; then it will be compelled to call for an indefinite ‘shutter-down’ throughout Dimapur. The call for public response against multiple and illegal taxations in Dimapur has always elicited spontaneous response in the past with the most well known being the public rally called by ACAUT Nagaland at Dimapur on October 31,2013. The rally resolve to not pay any tax but only under One Government One Tax. Most CSOs have expressed support to the stand taken by the DCCI against unabated taxation and illegal summons on businessmen by Naga political groups which have become more of a rule than the exception. On the other hand, while fully supporting the demand by the DCCI to tackle the problem, Naga Council Dimapur(NCD) has reiterated that closure of business on this account was not advisable. There have been several such bandhs in Dimapur against illegal taxation since past few decades but they haven’t been able to make the authorities act effectively to stop such activities. While business in Dimapur has been adversely affected by drop in commercial activities because of stagnant economy which made survival uncertain among many business firms, their plight is only made worse by constant threats for payment of tax arbitrarily decided by various Naga political groups. Added to this terrible situation is the practice of summons issued on businessmen for the offence of being unable to pay tax demanded or who are delaying payment due to negotiations. Rampant and unabated ‘illegal, unauthorised’ taxation imposed by hordes of organisations, unions including government agencies in Dimapur in existence during the 80s, have been widely reported especially in this newspaper since 1990. The rise of the extortion and illegal collection has been systemic, affecting transportation, every item sold in the market including service industry. With almost a hundred unions and associations and 20-odd political groups actively involved in imposing their writ under fees or tax, the commercial capital is fast becoming a criminal capital. There is nothing untaxed except the air and the sky and the blatant manner undertaken to forcible collect money has made this illegal and criminal activity a booming cottage industry. It will not be out of place to speculate that hundreds depend on this illegal cottage industry for sustenance. The involvement of some groups has made Illegal, rampant and multiple taxation not only acceptable but even legitimate. Unfortunately, this has had a very disastrous effect in driving out entrepreneurship to virtual extinction when business is no longer a safe and competitive venture. The competition has also resulted in mushrooming of factions and associations and welfare committees all of which target shops and business firms even including daily wage labourers. The business environment has thus been submerged under fear psychosis that has eventually led to either closure of business enterprises of driven many to start a new life in nearby Assam. Unless the government 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 that is destroying the future.

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