Dimapur, March 13 (MExN): The Dimapur Chamber of Commerce and Industry (DCCI) on Saturday said that unabated taxation from state government and the Naga Political Groups has brought the business scenario in Nagaland to its lowest ebb. If the state government and the NPGs do not take immediate corrective step the business in Nagaland is heading towards point of no return, it added.
In a press release issued through its Media Cell, the DCCI stated that over the last few years, many businesses have shifted to the bordering towns in Assam to evade heavy taxation from the state and NPGs. This, it said, has caused business opportunities to shrink in Nagaland.
It said that the high rate of taxation from state government in terms of municipal and town council tax, toll tax, item tax undermine the GST Act which has subsumed all such taxes, and add to the misery of the business community when compounded with the illegal collection at various check gates and post by police. The government of the day should take serious view of how far its GST/SGST revenue collection and growth has been affected due shrinking of business in Nagaland, it added.
The DCCI further stated that the taxation by NPGs has been increasing year by year and the business community is in no position to such phenomenal increase as there are hardly any improvements in business activity. It also pointed out that due to high rate of taxation, many Manipur bound businesses which were earlier based in Dimapur have now shifted base to Silchar in Assam and are now operating through Jiribam NH. This, it said, has also affected businesses such as hotels and transport way side dhabas.
It also pointed out that the monthly train wagon destined for Dimapur railway station has gone down from 120 wagons to 20 wagons per month, indicating losses of up to 60-75 per cent. Similarly, the number of trucks entering Nagaland as well as those heading towards Manipur through Nagaland has also come down drastically, it added.
The DCCI meanwhile stated that with the GST regime in place, the business community in Nagaland gets the same profit margin as their counterparts across India. However, it said that the business community in Nagaland shells out almost 50-75% of their profit margin in paying taxes to NPGs. In this context, it said that, “The NPGs should also understand that one of the main reason of our economy and business failing in Nagaland is due to their over taxation.”
Stating that the taxation today is beyond the ‘bearable limit,’ the DCCI appealed the NPGs to be “realistic and reasonable and take corrective measure at the earliest.”
On the other hand the NPGs should understand that the business community has always stood for early political settlement and will continue to do so, the release stated.
The DCCI also urged the Government of the day to come to its senses with regard to dealers shifting to nearby Assam towns and paying GST/SGST to the Assam government while feeding the state of Nagaland though smaller vehicles in order to avoid high taxation and collections. Citing examples of how several cement dealers/company train wagons, hardware, vehicular parts and other consumable godowns and distributors have shifted to Khatkhati and Lahorijan areas, it requested the state government to wake up to this alarming development and create a conducive business environment in Dimapur and save revenue losses.
The DCCI meanwhile questioned the District Administration and Police as to whether there are provisions for authorising individual or organisations to raid shops, godowns, etc., and impose fines on the dealers without the knowledge or presence of competent authority. If not, the administration and police should immediately rein in on those activities as the business community is facing undue harassment, it added.
Taxes paid to NPGS
Guwahati to Dimapur tax paid to various NPG by road:
The total of tax paid to NPGs to transport goods from Guwahati to Dimapur : Rs 19,500 for 6 wheeled truck; Rs 25,500 for 12 wheeled truck. This tax is over and above the DMC tax, Police Entry Fee, yearly tax, godown tax and shop tax paid to various NPGs.
Dimapur to Imphal tax paid to various NPG by Road:
The total of tax paid to NPGs to transport goods from Dimapur to Imphal: Rs 21,500 for 6 wheeled truck; Rs 25,800 for 12 wheeled truck. This tax is over and above the yearly tax, godown tax and shop tax paid to various NPGs.
Tax paid to various NPG per Train Wagon:
The total tax paid to NPGs per wagon are as follow; Rice @ Rs 19,000; Dal @ Rs 20,000; Sugar @ Rs 27,000; Edible oil @ Rs 32,000. This tax is over and above the DMC tax collection.
Source: DCCI
