Nagaland: Small business owners struggle to survive due to multiple taxations

Morung Express News
Kohima | April 30

Against the backdrop of the recent shutdown of businesses called by the CNCCI and DCCI in protest against rampant taxation and extortion to the business community, small business owners from various districts of Nagaland highlighted their struggles and the impact on business operations due to economic pressures of multiple taxations from various Naga Political Groups.

Small business owners, The Morung Express interacted to, voiced out on how without effective support and security, they are left to fend for themselves, compromising their dreams, hindering growth and stifling economic development.

Demands
The proprietor of a local ice-cream parlour from Kohima district, who has been into the business for almost a decade, shed light on the burden of informal payments and extortion on small businesses. According to the proprietor, who did not wished to be named, said the demands for these illicit payments often start at around Rs 10,000 but can be negotiated down through bargaining and explanation.

“As a small business, I don’t pay a huge amount to a single party, but as we pile up the amount to 25 different parties, it becomes very difficult to maintain and deal with them,” the proprietor revealed.

Another business owner from Phek district who has been working for 10 years, also speaking on condition of anonymity, revealed that she pays to about 6 different groups, with half of her total profits going towards these payments. “I have to pay just to keep my business running and my trucks on the road,” she lamented.

A boutique owner from Mokokchung district also revealed how she pays around Rs 10,000-15,000 annually to ‘only’ one party, which nevertheless affects her small business tremendously.

Threat, intimidation, consequences
Besides the financial stress, the proprietor of the ice-cream parlour said the immense stress and harassment that comes with these demands is agonising with ‘intimidation and phone calls.’  “They send their boys to collect, and if you don't comply, you're told to come to their office to meet the boss, which no one wants to do," the business owner lamented.

To avoid these confrontations, the proprietor explained that he prefer to ‘finish the matter on the spot’ by negotiating the amount then and there. “They generally say they have a government to run, but we all know they don't,” he remarked wryly.

The boutique owner said if they don’t pay, they are called to their private office headquarters etc where one is forced to pay by any means. The business owner from Phek revealed that failure to make these payments will lead to detainment of her trucks.

Trust deficit with law enforcement 
Trust in law enforcing agencies appears to be a major issue, when it comes to seeking their help.

The business owner from Phek said she had little faith in the ability or willingness of the law enforcing agency to effectively address these extortion demands.

Similarly, the proprietor of the ice-cream parlour said, “Seeking help from government agencies is not a viable option as we would still end up at the losing side and do not want to get personal with any group unless the government provides 24/7 security.”

The boutique owner also expressed apprehension stating “the law enforcement might be ready to protect us, but only if we are ready to put our lives first for the cause. Till now, I have not sought their help.”

Addressing the issue 
To address this problem, the business owner from Phek suggested the implementation of a dedicated helpline where people can report such incidents, triggering immediate action by the authorities. 

The owner of the ice-cream parlour expressed scepticism on the ability of the law enforcing authorities to effectively back up small businesses when they say ‘no’ to these demands. However, he maintained that movement like the recent shutdown of businesses will give entrepreneurs the courage to say ‘No.’

Meanwhile, the boutique owner suggested that the Central and State Government chalk out an economical assistance plans to enable the NPGs function during the ceasefire period thus lightening the burdens of the citizens. She expressed hope stating “in the future I hope it doesn’t add up to more parties and to settle down to zero party.”

Impact 
Multiple taxations is not only creating an environment of fear and uncertainty but also greatly impacting the prosperity of small businesses in the state, were the unanimous voice of the small business owners.

“All businesses start with high hopes, whether they flourish or not, but when you start getting phone calls and visits from these various Naga political groups, it affects your morale very badly,” the proprietor of the ice-cream parlour stated. 

The police and administration are not very supportive, despite what they claim on the papers, he maintained, adding, “We end up negotiating and dealing with it by ourselves, which turns out to be very bad and demoralizing as well.”

The boutique owner pointed out that as long as these illegal taxes exist; no simple and honest businesses will prosper. 

“It’s absolutely crippling, both financially and mentally. In my kind of business, we don’t pay yearly, but per truck, so we have to negotiate and fight almost every month,” the business owner from Phek lamented.