Sand Trail in Nagaland: Multiple illicit taxations burden customers with heavy price

Morung Express News Dimapur | November 12   The cost of 300cft of sand in Lungit, Karbi Anglong is Rs 2500. When it reaches Dimapur, it escalates steeply to around Rs 17000 - an astonishing increase by over 580%.   This reportedly is the ‘normal market procedure’ of the sand trade in Nagaland, particularly in the commercial capital Dimapur.   Normally, prices of commodities at source and retail generally vary, simply due to the working of market dynamics and statutory taxation. From the source and a number of levels in between, it reaches the end-sellers, who sell at a stipulated ‘Maximum Retail Price’ (MRP) to the consumers.   People involved at every level of the process need to make a living and after recovering the costs involved, inclusive of statutory taxes, the burden falls on the consumers in the form of selling price or MRP. In a regulated market, it is nothing unusual.   However, skyrocketing of price by over 500% from source to selling point is ‘incredible’ by any standard.   Sand suppliers allege that unlawful taxation from source to the consumers has contributed to sand prices skyrocketing in Dimapur.   A comparative assessment of the prevailing prices points to a wide gap between the cost at source and at the end of the supply chain. (See Table)   As a result sand is one such item that is costing dear today in Dimapur.   A clear lack of construction grade sand in Nagaland has had the construction sector sourcing its requirement from neighbouring Assam.   According to one supplier, the trail of “taxes” starts from the source points and culminates in Dimapur with agencies of Assam and Nagaland governments, Naga Political Groups (NPG) and even villages in Karbi Anglong joining the party.   Taxes from both sides The “taxes” range from as low as Rs.100 to as high as Rs. 3000 and vary according to grade and volume. It is further categorized into monthly and daily “taxes” as per the wishes of the agencies involved.   For Kanaighat sand, “The Assam Police checkposts at Koilamati (Rs.2000), Khatkhati (Rs.1000), Bokajan (Rs.1000) and Santipur (Rs.2500) prefer to be paid per month,” the supplier disclosed. He added that the Assam Motor Vehicles personnel stationed between Bokajan and Khatkhati charge Rs. 3000 per month, while its Nagaland counterpart stationed at the New Field checkpost charges Rs. 2000 per month. The Assam Forests checkpost at Khatkhati charges Rs. 2000 daily or per trip.   At the New Field Checkpost, Dimapur, daily or per trip payments are made to the DMC – Rs. 250, Forests – Rs. 300, Geology & Mining – Rs. 300 and a cumulative Rs. 1120 as entry “tax” to “all” the NPGs. In addition, another payment of Rs. 1500 is made as “Lorry Challan,” he said. It could not be ascertained how much the Nagaland Police charges at that particular checkpost.   A similar script is played out for sand from Deopani, Nagaon and Lang valley which enters via Dillai inter-state checkpost. The police at Dillai town, Bokulia and Manja respectively charges Rs. 3000, Rs.2500 and Rs. 3000 on a monthly basis, he said.   The Motor Vehicles (Assam) charge Rs. 3000 and an additional Rs. 1500 is paid as “Special Protection” to the Assam Police monthly, the supplier said. He did not specify to which Assam Police checkpost or station it is paid to.   As for “daily taxes” in the Assam segment of the route, he said that it starts from Howraghat and concludes at the inter-state checkpost. It is Rs. 200 at Howraghat and Bokulia, Rs. 300 at Patradisa, Rs. 100 at Chauhan Gaon and Rs. 200 at Lungit village, he said.   Assam Forests and police personnel stationed at Manja, Dillai town, 10th Mile, 6th Mile and at the Assam gate bordering Nagaland charge varying amounts daily that ranges from Rs. 100-600. He also mentioned of a “Protection tax” of Rs.300 charged daily by Assam Forests personnel.   Once it reaches the Dillai inter-state checkpost in Nagaland, Rs. 100 goes to the police, Rs. 300 each to the Forests and Geology & Mining departments’ revenue checkposts and Rs. 250 to the DMC. As regards “taxes” to the NPGs, the same process as carried out at the New Field checkpost is followed. The supplier did not specify how much is paid to each NPG. “We hand over the money to people, who claim to be collecting it on behalf of all the NPGs,” he said. The Rs. 2000 to the MV personnel is paid not on entry but when the truck makes its way out to collect cargo, he added.   Asked whether the truckers are issued challan (receipt) acknowledging payment, the supplier mentioned the Forests (of Assam and Nagaland), Geology & Mining departments, and the DMC as the only agencies that do so.   He though added that the truckers sometimes just hand over the toll fee to the people stationed at the DMC booths at New Field and Dillai without collecting receipt.   The Morung Express however could not independently verify the claims.



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