Northeast Desk, 5th October: The Confederation of Nagaland Chamber of Commerce and Industry (CNCCI) has expressed robust support for the newly-elected urban local bodies (ULBs) as they embark on initiatives to enhance the development of towns and municipalities. In a recent press release, CNCCI Chairman Dr. Khekugha Muru and General Secretary Dr. Seyievilie Mor praised the proactive role of ULBs while cautioning them against potential conflicts arising from taxation practices.
The trade organization emphasized that while ULBs have the mandate to issue trade licenses, collect sanitation taxes, and impose rents on their assets, these actions require careful oversight. The CNCCI warned that any hastily imposed fees could conflict with the Goods and Services Tax (GST) framework, potentially leading to the establishment of syndicates and monopolies, a phenomenon the CNCCI described as a “licensing raj.”
In their statement, the CNCCI urged ULBs to engage in comprehensive consultations with district chambers before establishing market rates for licenses and sanitation fees, referencing a state government order issued on September 14, 2021. The trade body expressed concern over reports from local businesses indicating that ULBs are attempting to enforce monthly collections on GST items and imposing elevated rates on perishable goods, which could result in steep price increases for essential commodities.
Dr. Muru and Dr. Mor reaffirmed their commitment to protecting the interests of both the business community and consumers, promising to contest any actions perceived as unjust. They called on district chambers to remain vigilant against new tax impositions that may contradict state and central government regulations.
Reflecting on past experiences, the CNCCI highlighted how ULBs’ introduction of exclusive licensing systems has led to monopolistic practices, ultimately driving up prices as syndicates gained control over market rates. The trade body strongly opposed such practices, advocating for adherence to GST regulations, which subsume various forms of taxation on goods to ensure fair trade and market stability.
Read More: Sikkim CM Prem Singh Tamang Pays Tribute to Former CM Nar Bahadur Bhandari on Birth Anniversary