Dimapur: “The demand letters come by March, April and we need to pay up within a month,” Akali, (name changed) a Dimapur-based entrepreneur said. Two more slips demanding payments – euphemistically called tax – issued by NSCN (IM) and other by Naga National Council (Accordist) lay on her table.
The total demand levied on her business by two groups was Rs. 2.5 lakh. “Taxation has gone beyond our reach, there are 9 factions of the underground and each of them claims they have a right to collect tax,” she said. “No one wants to die for nothing,” she said when asked whether anyone had approached the police.
Every shop big or small, business, enterprise in Nagaland pays militants groups like NSCN(IM), NSCN (Unification), NSCN (Khaplang) and other groups. The militant groups call it tax to run their “revolutionary government”.
So how it all work? Simple, truck entering Nagaland is taxed as are merchandise it is carrying. Subsequently, when goods reach the warehouse, a fresh levy – the Godown tax – is imposed. Militant groups also tax the wholesaler and retailer separately, NDTV reported.
“Each item is taxed at least 7 times,” says Mr Khekiye K Sema, a retired IAS officer and few people who are campaigning against illegal taxes levied by the militant groups. He says, “If the government raises 50 crore as tax, the Indian underground raises at least 5 to 10 times more tax than that.”
Just as the business community is getting together to oppose these illegal levies by forming groups like Association Against Corruption and Unabated Taxation (ACAUT), villagers, too, have joined in. This February, women of the Old Showuba armed with just sticks drove away at least 20 militants of various groups who gathered each day at crucial junction to extort money from tax. “They (the militants) used this location for long. It was unacceptable and unbearable, so we decided to get rid of them,” Ajika, a member of Women Action Committee, told NDTV. For 60 days women took turns to sit for vigil till the time the militants stopped coming.
What is ironic is that government employees also pay 24 per cent of their earnings as tax to the underground. “There is no option, the disbursing officer deducts 24 per cent when releasing salary and then pays the underground,” said Mr Sema. He added, “People don’t mind paying to support the Naga movement, but multiple taxation by multiple groups was harming the economy and killing entrepreneurship in Nagaland.”
When contacted, the NSCN(IM) said that groups like ACAUT had vested interests. The NSCN (Unification) said while it agreed that business and enterprise had point, a revolutionary government also could collect taxes.
Despite a fresh peace agreement at hand, on the ground it is still not clear whether or not multiple and oppressive system of illegal levies will end and most importantly whether cadre will agree to give up its weapons.