A persistent syndrome

For nearly three decades, Nagaland has been trapped in a damaging contradiction: a state with a constitutional government, yet an economy burdened by multiple unofficial authorities demanding money in the name of taxation. Since the mid-1990s, government departments, employees, businesses, traders, and even roadside vendors have faced a proliferation of so-called taxes, levies, donations, and “voluntary contributions.” Behind these terms lies a simple reality-extortion has become institutionalized, while the state has largely watched in silence. The scale of the problem is alarming. In 1997, Nagaland had four armed factions. Following the ceasefire that year, the number rose to six. Today, as many as 37 groups identify themselves as Naga Political Groups. In Dimapur alone, about 350 unions, associations, and syndicates reportedly operate in ways that help justify collections from businesses, traders, and vendors. Such a system cannot be described as governance. It is predation sustained by fear. Taxes are legitimate only when they are imposed by lawful authority, used for public purposes, and subject to accountability. Money extracted through intimidation does not become legitimate merely because it is presented as a contribution to a political cause. When businesses are compelled to pay several factions simply to function, the result is a parallel economy in which private interests prosper while citizens, consumers, and public institutions bear the cost. The consequences are profound. Businesses may lose 30 to 40 percent of their earnings to illegal collections. Investment is discouraged, prices rise, infrastructure remains inadequate, and ordinary citizens live under persistent anxiety. This is not a continuation of the Naga struggle; it is a betrayal of its promise. A movement that claims to defend the people cannot simultaneously undermine their livelihoods and deny them the protection of law. The public has not been silent. In 2013, ACAUT Nagaland organized a rally attended by more than 40,000 people. Its message-“One Government, One Tax”-was both clear and reasonable: people should pay taxes only to a legitimate, unified government, not to multiple armed organizations asserting parallel authority. Several organizations across the state subsequently endorsed the same principle. The latest reaffirmation by the Kohima Chamber of Commerce and Industry is therefore significant. By adopting the Angami Public Organisation’s 1993 resolution, KCCI has called on traders and commercial establishments to reject unauthorized taxation and recognize only the constitutional government’s authority. Its appeal for uniformity among trade bodies, market committees, and business operators is essential. Fragmentation benefits extortionists; collective action gives citizens strength. That principle should guide districts, because selective enforcement will only shift the burden from one market to another. Yet resolutions alone cannot end the crisis. The government and law-enforcement agencies must enforce the law impartially, protect those who resist coercion, and ensure that no business is left to face threats alone. Passive inaction is not neutrality. When illegal collections continue unchecked, silence begins to resemble complicity. KCCI’s stand is a test of Nagaland’s collective will. Traders must stand together, and the government must finally act. The choice is stark: allow extortion to remain an accepted parallel system, or restore the rule of law. Nagaland cannot build a secure, prosperous future while fear is treated as a tax. It is time to make “one government, one tax” more than a resolution—it must become the foundation of public life.