CNCCI Backs Nagaland’s Urban Local Bodies While Expressing Concerns Over Taxation Practices

Kohima, October 7, 2024 – The Confederation of Nagaland Chamber of Commerce and Industry (CNCCI) has publicly endorsed the newly-elected urban local bodies (ULBs) in their efforts to foster development within towns and municipalities. In a recent statement, CNCCI Chairman Dr. Khekugha Muru and General Secretary Dr. Seyievilie Mor acknowledged the important role of ULBs but raised alarms regarding potential conflicts stemming from taxation practices.

The trade body emphasized that while ULBs have the authority to issue trade licenses, levy sanitation taxes, and charge rents for their assets, these activities must be conducted with caution. The CNCCI warned that hastily imposed fees could disrupt the Goods and Services Tax (GST) framework, potentially fostering syndicates and monopolies—a situation the organization described as a “licensing raj.”

In their announcement, the CNCCI urged ULBs to engage in thorough consultations with district chambers before determining market rates for licenses and sanitation fees, in line with a state government directive issued on September 14, 2021. The organization expressed alarm over reports from local businesses indicating that ULBs are attempting to enforce monthly collections on GST items and charging inflated rates on perishable goods, which could lead to significant price hikes for essential products.

Dr. Muru and Dr. Mor reaffirmed their commitment to safeguarding the interests of both the business sector and consumers, pledging to challenge any perceived unjust actions. They called on district chambers to remain alert against new tax initiatives that may contravene state and central government regulations.

Reflecting on historical patterns, the CNCCI pointed out that the introduction of exclusive licensing systems by ULBs has often resulted in monopolistic behaviors, driving prices higher as syndicates monopolized market rates. The trade body vehemently opposed such practices, advocating for compliance with GST regulations, which aim to consolidate various forms of taxation on goods to promote equitable trade and market stability.