Nagaland Chamber of Commerce supports urban local bodies while raising concerns over taxation policies

The Confederation of Nagaland Chamber of Commerce and Industry (CNCCI) has expressed its support for the newly-elected urban local bodies (ULBs) in their efforts to enhance towns and municipalities. In a press release, CNCCI Chairman Dr. Khekugha Muru and General Secretary Dr. Seyievilie Mor commended the active role of the ULBs but cautioned against potential conflicts arising from taxation practices.

The trade body highlighted that while it is the mandate of ULBs to issue trade licenses, collect sanitation taxes, and impose rents on their assets, these actions must be carefully scrutinized. The CNCCI warned that hasty impositions could clash with the Goods and Services Tax (GST) and might foster syndicates and monopolies through what they termed a "licensing raj."

The CNCCI urged ULBs to engage in thorough consultations with district chambers before setting market rates for licenses and sanitation fees, following the state government order dated September 14, 2021. The trade body raised alarms over reports from businesses regarding ULBs attempting to enforce monthly collections on GST items and high rates on perishable goods, which could trigger steep price hikes for essential commodities.

Dr. Muru and Dr. Mor reiterated their commitment to safeguarding the interests of both the business community and consumers, vowing to challenge any acts perceived as unjust. They directed district chambers to remain vigilant against new tax impositions that contradict state and central government regulations.

Past practices of ULBs introducing exclusive licensing systems have led to monopolies, driving up prices as syndicates controlled market rates. The CNCCI strongly opposed such practices, calling for the adherence to GST regulations that subsume various taxation forms on goods.

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