DIMAPUR, OCTOBER 4 (MExN): The Confederation of Nagaland Chamber of Commerce and Industry (CNCCI) has commended the proactive role of newly elected Urban Local Bodies (ULBs) in enhancing the living conditions in towns and municipalities. Representing the business community, the CNCCI expressed its full cooperation and support for the ULBs' initiatives aimed at improvement.
However, the CNCCI emphasized the need for clarity regarding taxation and collection practices. It acknowledged that while ULBs have the mandate to issue trade licenses, collect sanitation taxes, and impose rents on their assets, any additional collections must be thoroughly evaluated to prevent conflicts with the Goods and Services Tax (GST) law and state government orders. The CNCCI cautioned that inappropriate taxation could foster syndicate and monopolistic practices through an inefficient licensing system.
The statement highlighted that previous ULB administrations had established a licensing and lessee system that granted exclusive rights to select individuals or businesses, leading to monopolies and syndicates in various commodities. This system resulted in price escalations, as monopolists could fix prices, further exacerbated by additional illegal charges imposed by lessees. The CNCCI made it clear that such undemocratic and unethical practices would not be tolerated, vowing to explore all avenues to curb them.
The CNCCI reminded ULBs that establishing collection points for taxation along National, International, and state highways contradicts GST law, which has subsumed all goods-related taxation. It referenced the state government’s order from September 2021, which banned all forms of tax on goods covered by GST, and another order from May 2022 restricting collection gates, except for interstate check points.
The CNCCI stated that ULBs should refrain from collecting parking and toll taxes on state and national highways unless they assume responsibility for the maintenance of those roads. The chamber pointed out that businesses and citizens should not be subjected to multiple taxation for the same services.
Moreover, the CNCCI raised concerns over recent circulars allowing individuals or third parties to collect taxes. Such arrangements have historically led to misuse and excessive charges, harming the business community and resulting in fiscal losses for the ULBs.
The CNCCI advised that individual businesses should not be involved in rate fixation, as their limited perspective could misguide ULBs. Instead, they urged ULBs to consult with district chambers for establishing fair market rates for trade licenses and sanitation fees, adhering to the September 2021 government order.
The chamber also received complaints regarding certain ULBs attempting to impose monthly collections on GST items and high rates on perishable goods, warning that such actions could lead to alarming price increases on essential commodities, adversely affecting the common man.
In light of these developments, the CNCCI called on district chambers to remain vigilant against the imposition of new taxes that contradict state and union laws. They emphasized the need for swift intervention to prevent the establishment of detrimental precedents that could harm both the business community and consumers in Nagaland.
