It has become a tradition at the beginning of every financial year in the state that the issue of low revenue of the government is discussed and mentioned in abundance. The receipts in the annual budget collected of the state is quite dismal and the state has to depend on financial transfers from the centre. In the last 54 years since statehood there has not been a single government in the state that was able to give a clear and plausible focus on this matter, let alone any notable financial roadmap for the state. Successive Budgets have been introduced and passed mostly anticipating the state’s component for many mega developmental projects. However, the state Budget mostly has been either a tax-less budget or a budget of reduced taxes.
There are a myriad of narrations and different facets being portrayed of the story of the Naga people with matters of tax. Some of the versions have basis on factual events while some are just fantastic and many tend towards fallacious conclusions. Out of all these, the most popular narrative is that the Naga political movement that was first made known to the Simon Commission in 1929 and the transformation of the Naga Hills District Tribal Council to Naga National Council was a fight against paying tax. It was a movement against paying tax indeed, but against the tax of the Indian government. A similar move against tax also known as the ‘No Tax Campaign’ against the payment of house tax to the Maharaja of Manipur was launched in 1948 in Mao. This movement is noteworthy as the standoff between the people and the government agencies that came to arrest the leaders resulted in firing by the security forces, killing three on the spot with many injured, some of whom succumbed to injuries later. Such instances are now narrated as if the Naga movement was only against paying taxes, discarding the other significant aspects of paying taxes; accepting control and swearing allegiance.
On contrary, the resolution of the NNC to collect household subscriptions and tax on businessmen and contractors of those days are clearly documented in the minutes and resolutions of the organisation. After statehood and the failure of the ceasefire leading to arrest of many of the cadres, followed by the policy of rehabilitation of ex-undergrounds employed by the government, the activities and the collection of taxes by the Naga national groups dwindled. However, it was short-lived and by the early nineties the different factions of the Naga political groups slowly swarmed the state. Some factions of the NNC-Federal setups were also back in the scene with demand for household taxes that were overdue in their absence. Later, the decision of the Government of India, after the failure of the ceasefire of 1964, its decision that it will never conduct any more negotiations with Naga groups was retracted when it signed the ceasefire agreement with the NSCN (IM) in 1997. Although the ceasefire agreement included a clause against extortion, the ceasefire itself gave some legitimacy to collect tax. This was quickly emulated by the other groups and factions that it slowly became a nuisance for the general populace. The scenario never recovered from then on and the issue of tax to so many factions and groups continues to present times that the word ‘tax’ has such high negative connotations among the people.
There is also a large group of people in the state who have become reactionaries to the idea of any form of tax. It is not without ample reason but still many in this group have strong conviction that the country should provide for everything in return for joining India since that was the commitment, at least in words, given to the various Naga delegations before statehood. Moreover, the exemption of Income Tax for Scheduled Tribes in India is also taken as an excuse to ignore all other forms of taxes by the people.
In this quagmire, it is not only the STs but other categories of people and organisations are being overlooked thereby decreasing the revenue of the state. There also many transactions made under the names of person of Scheduled Tribes and also under organisations owned by STs to evade taxation. Another very peculiar scenario in the state is that even the enforcers from the various revenue generating agencies over the years are convinced that it is wrong to make fellow Naga people to pay any forms of tax, cess, duties etc. Conversely, the same people will have no qualms to take some form of bribe or favour in order to lessen the actual recorded payments made since it is considered as a help provided to a fellow Naga. It is not surprising therefore that a former Chief Minister once commented to the taxes department that the collection of tax in the state was very low and the department needs to increase the tax collection. All in all, for the people of the state especially the Naga ST population, it is all for the taking but giving in the form of tax to the government is still anathema.
