Sand suppliers to stop delivery till issue get resolved at governmental level
Morung Express News
Dimapur | June 1
The Sand Stockiest and Suppliers Union Dimapur (SSSUD) has stopped transporting sand from Assam to Dimapur beginning June 1. The SSSUD today said that the Environment, Forest & Climate Change (EF&CC) and the Geology & Mining (G&M) departments are levying the same tax on one item (sand), which amounts to double taxation.
SSSUD general secretary Nito Sumi told media persons today that pending the Nagaland state government executing a clear cut decision on the dispute over royalty collection on minor minerals between the EF&CG and the G&M, the union has no other option but to stop supply. Some 70-80 sand-laden trucks were stranded today along NH 36 in the Assam-Nagaland border.
As a result of the dispute, trucks transporting sand to Dimapur have been compelled to pay statutory tax on sand to two different departments. Basing on different regulations pertaining to revenue on minor minerals, both the departments are claiming rights over royalty with each levying Rs. 300 per truckload of sand entering Dimapur from Assam.
Maintaining that it is legally unjustified on the part of the government, Sumi added that the economic consequences will only fall on the consumers if the double taxation continues.
“The government must clarify which department has the authority to levy tax (on sand),” said Sumi.
According to the union, the G&M has reportedly agreed to stop levying tax till the issue gets resolved. However, it alleged the EF&CC of not assenting to the union’s request to temporarily suspend tax levying till the dispute gets resolved.
The dispute over rights on royalty on minor minerals (sand, gravel etc.) is not new. As recent as September 2017, the two departments had locked horns on the same matter, while the suppliers and the consumers paid the price.
At the time, the G&M maintained that it was following governmental directive as mandated by the Nagaland Minor Mineral Concession Rules, 2004, framed under the Nagaland (Ownership & Transfer of Land and its Resources) Act, 1990. The EF&CC based its contestation on the Nagaland Forests Act, 1968 and the Nagaland Jhumland Act, 1970 while maintaining it was the sole government entity charged with the responsibility of regulating the commercial exploitation of forests and minerals.
The dispute was reportedly resolved in October 2017 with the state government delegating the authority to the G&M. This was further reported to have been approved by the Chief Minister on April 2, 2018.
The same month, a notification was issued by the Chief Secretary informing of the Governor of Nagaland constituting review committee on the matter of royalty collection on minor minerals. As per the notification dated April 17, 2018, the committee was chaired by the EF&CC Principal Secretary with officials from the departments of Finance, Justice & Law and G&M as members. While stipulating the committee to submit its report in a month’s time, the notification reverted “all matters pertaining to the collection of boulders, stone, sand etc” to the EF&CC. The notification further stated that it has the approval of the Chief Minister dating to April 4, 2018.
