Tax and extortion: Shopkeepers live in fear (Part-2)

Eastern Mirror Desk
Dimapur, Nov. 21: After the special report concerning tax and extortion problems that hotels and restaurants owners and proprietors of bakeries in Nagaland’s commercial hub Dimapur face every year, Eastern Mirror went on to survey other business establishments namely fruit and vegetable stalls, retail shop and electronic stores. It was found that taxation and extortion continues side by side unabated despite protests by the public.

Retail

A small retail shop owner, who has six years of experience, told Eastern Mirror that four armed groups namely the NSCN (IM), NSCN (K), NSCN (U), and FGN demand “tax” between INR 10, 000 to 15, 000 annually. They end up paying INR 4,000 to 6,000 after negotiations though. He added that some miscreants claiming to be from the groups demand about INR 500 to 1000 once or twice in a month.

“We feel threatened so we pay the ransom just like we pay tax to the government. Some close-down their shop for not being able to pay,” the shop owner said.

A salesman, who looks after a retail shop, said that the store pays about INR 40,000 to 50,000 annually to all the seven groups. “All the business people cry for that matter. They never realise how hard it is to earn. They simply take away our money,” he said, adding that some miscreants claiming to be from one of the factions demand about INR 100 and 200 every week to buy petrol. He went on to say that business people were compelled to give in the demand of the miscreants as they threaten and even at ‘gun-point’ for a few hundred rupees.

Another shop owner, who does not wish to be named, said that he pays between INR 1,500 to 5,000 annually to all factions (NSCN) without any receipt. “The amount is reduced to INR 1,500 as I do not earn much from this small shop that barely gives me profit of about INR 0.50 to 10 per item. Rats, moths, and cockroaches eat away half of my commodities. I barely make INR 2,000 a month. Sometimes, it does not even reach that amount,” he said.

He went on to say that some miscreants inspect date of manufacturing of goods and restrict Myanmar-made products, and demand about INR 2,000 for the inspection. “I know how to check manufacturing date but they conduct such inspection by force. They also charge and additional INR 1,000 for godown,” he claimed.

“We, non-locals, are very scared of them and are saddened by the fact that we give our hard-earned money to them. I have to clear my children’s school fees, reserve money for medication, and buy food for my family but they do not care about that. Instead, they threaten me by saying that they will close down my shop. There are many shopkeepers that live in fear, just like me. If a Naga male comes by, we feel very scared thinking that he might be one of the miscreants. Our life is very unfair,” lamented the shop owner.

When asked if shopkeepers inform the police, he replied, “We do inform (police) but it is useless. There are some cases where the police arrest miscreants in front of us but release later in our absence after taking money from them. After few days, the miscreants will continue collecting money but will double the amount to recover the fines they had paid. We are the ones who suffer instead.”

“When I was living in my village, people said that I will be able to do good business if I establish a shop in Dimapur, this is why I came here to start my dream. But now, due to such tax, I cannot make progress in my business. I really do not want to live here anymore but it is now too late to turn back,” he added.

Fruit and vegetable vendors

A fruit vendor, who has been in the business for 15 years, told this newspaper that the fruit vendors are charged INR 300 by two groups. However, he said that they do not have any issue with it (collection of tax).

Some fruit vendors said that they pay tax through the wholesalers but most of them refused to divulge any information on it.

However, a vegetable vendor who did not wish to be named said that he pay INR 1,500 annual tax to two to three insurgency groups. He said that some miscreants claiming to be from the factions take away vegetable without paying, while forcefully take cash ranging from INR 10 to 1,000.

“What can we do? We do not want to be beaten or killed, so we just give it (money) away,” said the vendor.

Vegetable vendors in one of the localities in the town said that they receive a weekly demand of INR 50, which is INR 200 a month or INR 2600 a year. “What can we say? We are bound to give because we cannot raise our voices against them. Only money will keep them silent,” said one of the vendors.

Electronics stores

An electronic store owner in the town told this newspaper that seven NSCN factions demand an annual tax ranging from INR 60,000 to 70,000 but they reduce the amount by INR 6000 or 7000 after negotiation.

“After goods and services tax (GST) was implemented in India, we business people are facing a huge recession. This is how I convince them to lower the rates,” said the person, adding that the extortionists demand an ‘additional and unfair’ tax between INR 2,000 and 3,000 for godowns.

“They (extortionists) charge that much amount even if we do not own a godown. Though I feel this town (Dimapur) is my home, I think it is very unfair for the non-locals. We do not want ourselves to get hurt for not being able to pay so we just pay them without arguing,” said the electronic store owner.

Another electronic store owner said that he pay INR 10,000 to 20,000 annually to several insurgency groups. “It is our daily routine. We cannot escape from it so we just pay it though we do not want to. We feel so sad to give away the money we earn but what is even more sad is that we cannot raise our voices,” he said.

For the other parts please follow the link below:-

Part 1-Tax and extortion: Illegal appropriation vexing business
Part 3-Tax and extortion: Why traders form groups
Part 4-Tax and extortion: Role of the negotiator