Tax and extortion: Why traders form groups (Part-3)

[caption id="attachment_219468" align="aligncenter" width="565"] View of a busy alley in Hong Kong market in Dimapur. (EM Images)[/caption] Muzhaba Jamir Dimapur, Nov. 22 (EMN): Being pummelled by illegal appropriation and taxation, most of the business communities in Dimapur have to make certain ‘adjustments’ in order to simply survive. As a part of the sequel to the report about tax and extortion, Eastern Mirror conducted another survey among some of the business establishments namely consumer electronics, apparel store, pharmacies, and hardware shops located at Hong Kong market, Hazi Park, Nyamo Lotha Road, and Dhobinullah junction in Dimapur. It was observed that almost all the shops, including paan shops, are a part of an association. In some cases, they form an association for that purpose where they syndicate and collectively pay funds and taxes to varieties of individuals and Naga armed groups. Some were even reported to have recently joined the association because they could not fight back individually. There are over seven business associations within the main town. Those demanding money from shops are sent to the union’s office, whereby, the heads and office bearers negotiate to a point where they all agree to a certain amount of money. It was informed that tax collection begins after the month of March. Some associations make preparations by accumulating tax to be paid to the entire group at once. Some accumulate tax only if they are demanded. Each of the business people contributes taxes based on the proportion of his or her income while some were reported to be judged according to the size of the shop or the amount of merchandises he or she has. Consumer electronics shops and apparel stores One of the owners of a small consumer electronics shop  at Hazi Park said that he annually pays INR 4000 to 5000 while saying that the tax sometimes rise between INR 7000 to 9000. Some reported to pay even more than that but did not wish to disclose the details. Even the apparel store were approached; but they refused disclose any information while suggesting it was better to approach the committee they are affiliated to. Surprisingly, there were no reports/instances about individual miscreants who demand money through violence—at least from among those Eastern Mirror spoke to. It was found that the entire shops at Hazi Park and Hong Kong market are affiliated to a particular committee who takes care of the problems regarding ‘illegal tax.’ Reportedly, the president of said association was away. None of the other members were willing to divulge any information about tax without the consent of their president. Pharmacies Nyamo Lotha Road is a place in Dimapur where high numbers of pharmacies are established. Most of the owners and salespersons were interviewed but did not wish to talk about illegal collection; and suggested it was better off approaching an association (name withheld) they were affiliated to. One of the members of that association told this reporter that the entire matter about tax and funds are taken care of by them. The person wished to remain anonymous and did not want to share about the amount of ransom demanded and paid. But he did mention that they pay tax and funds to every groups and unions including various Naga armed groups, namely, NSCN (IM), NSCN (K), NSCN (U), NSCN (R), FGN, NNC (Accordist), and NNC (Non-Accordist). “We do not entertain every miscreant or individual that comes for money. But we do confront them when they are sent by the shops under our association. We try to protect those shops when they are facing such difficulties,” said the member. He said that most of the tax demanded is paid after a unanimous decision and added that some of the miscreants end up harassing them. “These people say, ‘we will soon see about that’ but once they go, they never show up. Some of them draw their pistol for a mere demand INR 200 and 500,” he said. “Most of the pharmacies do not make much profit as we sell medicines at a fixed retail price no matter which location we are in. If any of them are found selling at a higher rate, we cancel their license. This is why we have a strict environment where we do not give even INR 1 to any individuals unnecessarily,” the member explained. He said that if taxes are not paid, people from some of the factions and unions take advantage of the refusal and resort to their own actions like drug inspection at pharmacies. “These people claim that they received orders from departments but when asked to show it, they flee from the scene,” said the members while suggesting that a drug inspector should be present while conducting such inspections. “Of course, we will pay taxes because we are bound to follow the customary laws as long as we are in Nagaland but I wish they (armed Naga groups) are more systematic just like the municipal councils or the other departments. If they are fighting for us, why are they making the public suffer? This is why we do not develop like the other states. Why not create a system to the point where everyone agrees because we need to prepare for the future of our generation. But I fear they are fighting for their pockets and not for the nation,” said the member. Hardware stores While surveying through the Nyamo Lotha Road and Dhobinullah area, it was found that most of the shops, which includes hardware stores, sports emporiums, stationeries, electronics shops, and such were affiliated to an association. A proprietor of a hardware store said that he pays an annual ransom of INR 50, 000 to over 1,00,000. “Business in Dimapur is dying. We are facing a huge loss and there are those people who want free money. There is tax for a nail, tax for a supari (betel nut), and there is even tax for an egg. For a hardware store like mine, it is a big blow to our business,” he lamented. For the other parts please follow the link below:- Part 1-Tax and extortion: Illegal appropriation vexing business Part 2-Tax and extortion: Shopkeepers live in fear Part 4-Tax and extortion: Role of the negotiator