Govt Should Step In: Not another ‘Tax’ Please

The Dimapur Chamber of Commerce (DCC) and its subsidiaries have not without reason reacted strongly to an order reportedly issued by the Additional Deputy Commissioner, Dimapur permitting Naga Council Dimapur to collect taxation as ‘Naga Commission’ on certain items coming to Dimapur. While the collection of such taxes or commission by groups both armed and otherwise is a known fact, it was surprising to learn that the collection of “Naga Commission” by the Naga Council Dimapur has been going on for quite sometime. What the ADC had done was only to renew a permit which was in force since its inception to levy traditional Naga Commission on permitted items at nominal rates fixed by the Government. This is as per the clarification given by the Naga Council. According to available information the ADC Dimapur has permitted Naga Council Dimapur to collect tax on building materials, timbers, perishable goods including such as food items, vegetables and fruits, animal, birds, fish etc till 31/10/2010. With due respect to the noble ideals of the Naga Council and the yeoman service it is rendering towards public welfare, what it is doing through collection of the so called ‘Naga commission’ is not the right thing and the same should be stopped. Colleting taxes or commission is not the right or duty of civil society groups like the Naga Council or anybody else. This job has to be performed by the State government. If today the Naga Council starts collecting such commissions, other apex bodies in every other district may likewise argue that they have equal right to do the same. When this happens, God save Nagaland! If we are serious about making Dimapur a vital trade hub and as a bridge between Southeast Asia and the rest of mainland India, then we need to get our basics right. The State government should realize by now that no one wants to do business with Nagaland. We have not provided an enabling environment for investment and commerce to thrive. There is something terribly wrong with our ‘system’.   

The Chief Minister of Nagaland must take an unambiguous and tough stand against such unwanted practice of ‘collections’, whether by the Naga Council or the plethora of our NGOs, unions etc. And if he is giving so much importance to revenue collection as mentioned in his Budget speech, it makes sense for the CM to ensure that the authority of the government is feared and respected. It will be worthwhile to note that while presenting a deficit budget, the CM proposed no new taxes but stressed upon better realization of revenues. For internal revenue collection, the target has been put at Rs.369 crore. Rio has even talked tough that the government will reward the departments who reaches or overshoots the target and punish those who do not reach the target. This tough talk must be put into action. The CM should also seriously consider having a senior officer from the Indian Revenue Service (IRS) to help in streamlining and revamping collection in a professional manner so that all loopholes can be plugged. A separate Revenue Department may not be feasible now but better coordination of revenue generating departments is a necessity. In this connection it is welcome to learn that the Cabinet has approved measures to improve revenue performance. In his budget speech the CM has also assured that there will be strict monitoring of deductions and deposit of taxes by various departments. All these are steps in the right direction. At the end of the day, the government must demonstrate the authority to run the affairs of the State. There is no need to delegate taxation powers to anybody else other than the government.