Chumoukedima, Nagaland, April 28 (HBTV): Amid the ongoing shutter-down by Nagaland’s business community protesting threats, extortion and illegal taxations by Naga underground organizations, a social activist has asked the state’s chief minister to address the issue of illegal deductions imposed on contractors and suppliers. The illegal deductions are in the form of undergrounds’ tax (3%-5%), landowners tax (up to 5%), commissions for ministers and advisors (10%), party funds (5%), and so-called mobilization funds of 5%, among others.  

The shocking percentages of illegal deductions and commissions were stated in a letter addressed to the chief minister by a citizen, Ben Imsong, who identified as a social activist.

These deductions are illegal as there already is a tax regime in place such as the Goods and Service Tax or GST, which contractors and suppliers pay at the rate of 18%, the letter stated.   

These rampant deductions are causing a lot of problems and make it hard for the persons in concern to do their jobs, the letter stated.  Sometimes, these deductions add up to 40% to 50% of what contractors make, and thus force them to cut corners and compromise on the quality of work to make ends meet, the letter stated.    

Further, the citizen stated that these deductions and commissions are affecting the public too, which is not fair too. The letter suggested adopting the Foothill road method of no tips or deductions by Naga underground groups, no deductions of state taxes for developmental workers. Further, landowners can be compensated as per prescribed standards.