Multiple taxation in Nagaland: State government asks trade bodies to reconsider state-wide strike

The Nagaland government has appealed the apex business body Confederation of Nagaland Chamber of Commerce & Industry (CNCCI) to reconsider its call for a State-wide closure of all the shops and business establishments on September 16 and to instead support and cooperation to the Government departments for tackling the menace of illegal taxation/extortion.

CNCCI has called for closure alleging that the state government has failed to stop multiple illegal taxation from Naga Political Groups (NPGs). The body has threatened to intensify agitation if the government fails to take action.

A meeting was held under the Chairmanship of Deputy Chief Minister to deliberate for developing a comprehensive strategy for dealing with the complaints pertaining to Illegal Taxation/Extortion in Dimapur District, and also for discussing the matter of collection of items tax/fees by ULBs (urban local bodies (ULBs)and certain other issues as contained in the representation submitted by the CNCCI.


The state government stated the collection of any kind of tax/fees on items/goods that comes under the GST regime shall be immediately stopped by all the Municipalities and Town Councils across the State. Any other Government Department/agency, which may be collecting tax on any items falling under GST regime shall also give directions for immediately stopping such collections.

The government added Commissioner of Police, Dimapur will immediately put in place a security grid and take other measures, including stationing sufficient security personnel at various locations to check illegaltaxation/extortion. The Administrators of all the Urban Local Bodies will take steps for including the representatives of the business communities of their cities/towns in their advisory committees for taking decisions in respect to various business related activities.

The necessary Orders/Directions, wherever required, for the decisions taken in the meeting would be issued shortly by the Government.

In the meeting it was also informed that the application of the SARFEASI (Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest) Act, 2002 is under examination of the Select Committee of Nagaland Legislative Assembly and that the meeting of the Select Committee is scheduled on 14th September 2021.