Morung Express News
Dimapur | September 26
While the two respective departments – Forests and Geology & Mining - maintain positions of perceived clarity over the matter banking on statutory Acts, ambiguity certainly prevails on the ground. Both the departments continued to levy tax on ‘minor minerals’ (sand, gravel etc) perplexing as well as increasing the burden on suppliers and transporters, ultimately affecting the consumers.
As for the department of Forests, the Nagaland Forests Act, 1968 and the Nagaland Jhumland Act, 1970 were cited as the legal statutes based on which it has been regulating the collection of royalty. According to the Forests department, as the sole government entity charged with the responsibility of regulating the commercial exploitation of forests and minerals over the years, it should continue to do so till the current issue gets resolved.
“Till such time the problem is resolved, the department (Forests), which has been doing it has to be allowed to collect,” stated the DFO, Dimapur today. He added that the state government have to resolve it immediately.
Principal Secretary of the department, Lhoubeilatuo Kire when contacted further reiterated the content of an office memorandum (OM) issued by his office on September 22, which called for “status quo” on jurisdiction over minor minerals. The OM was endorsed to the Minister of Forests, Chief Secretary, Geology & Mining (G&M), Commissioner of Taxes, Forests department officials, besides others.
Kire, while stating that it should not be read as a “tussle” between the two departments, maintained that “status quo” should be observed. By status quo, he implied that till the matter gets resolved the Forests department should hold the fort.
Director of G&M, Wanthang Rengma described its action of levying tax on ‘minor minerals’ as following governmental directive. “The government has empowered us to collect. What direction the government gives us, we’ll follow,” said Rengma.
He held the G&M, with its technical manpower, as the right department to regulate mining and the royalty from it. He also said that the issue should not be viewed as a dispute. “This has to be resolved at the higher level (of government). I think the government has to give a clear directive.”
Calls made to the Chief Secretary and the Additional Chief Secretary remained unanswered. The latter, as per the departments, is chairperson of the Review Committee on Implementation of the NMMCR, 2004.
‘It amounts to double taxation’
The ACAUT meanwhile stated the public should not suffer as a result. The act of two government departments levying the same tax on a given set of items tantamount to “double taxation,” said the ACAUT.
“The people should not suffer on account of the government’s inefficiency. Until the matter is resolved both the departments should stop levying tax (on minor minerals) because it amounts to double taxation,” commented ACAUT spokesperson Mar Longkumer. Stating that the ACAUT is with the suppliers and transporters, Longkumer said that they should refrain from paying till the issue between the two departments gets resolved. He added at the same time that the suppliers should also not take advantage of the imbroglio.
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