DCCI Raises Alarm Over Double Taxation and Unregulated Levies by Dimapur Municipal Council
Dimapur: The Dimapur Chamber of Commerce and Industries (DCCI) has raised serious concerns regarding the taxation policies enforced by the Dimapur Municipal Council (DMC), calling them excessive and detrimental to the local business community. In a recent statement, DCCI criticized the multiple layers of taxation, which include instances of double taxation, adding to the financial strain on businesses already under the Goods and Services Tax (GST) framework.
The chamber highlighted that many businesses are facing an increased tax burden due to unregulated levies imposed by DMC. According to DCCI, this practice not only affects operational costs but also undermines business growth and sustainability. “Businesses operating under the GST regime should not be subject to additional municipal taxes. It is counterproductive and places unnecessary strain on their finances,” the statement said.
One of the prominent issues pointed out by DCCI is the DMC’s practice of charging Rs 1,000 per month as a regulation fee from second-hand clothing shops, despite these shops already complying with GST requirements. DCCI termed this levy as “illegal,” urging the municipal authorities to review and amend such policies to prevent undue financial pressure on small businesses.
Additionally, the chamber brought attention to a recent move by DMC to impose one-time payments of several lakh rupees on shops selling decorative items. These charges, levied just before the festive season, were seen as particularly burdensome, as they could disrupt the seasonal sales peak that many businesses rely on. DCCI criticized these levies as exploitative, calling for a more structured and fair approach.
The chamber also flagged irregularities in the taxation of perishable goods, including items like tomatoes, potatoes, and onions. DCCI noted that the DMC imposes inconsistent charges on these products, leading to arbitrary price hikes. According to the chamber, this lack of regulation not only creates market instability but also affects consumers, who ultimately bear the brunt of unpredictable pricing.
In its statement, DCCI urged the Dimapur Municipal Council to reconsider its taxation approach, advocating for a transparent and regulated system that would establish fixed rates and eliminate double taxation practices. The chamber emphasized that a fair and stable tax environment is crucial for the growth and sustainability of local businesses, and urged the authorities to take immediate steps to address these concerns.
