Taxed to Death in Nagaland

Nagaland is India’s highest taxed state. Besides the government, three militant outfits—two factions of the National Socialist Council of Nagaland (NSCN) and the Naga National Council (NNC)—also tax the populace. Nagaland is India’s highest taxed state. Besides the government, three militant outfits—two factions of the National Socialist Council of Nagaland (NSCN) and the Naga National Council (NNC)—also tax the populace. This is well known. Last week, in response to a fare hike threat by private bus operators, the state government acknowledged it for the first time. The bus operators said passenger fares would have to be hiked by 50 per cent if the three groups, which are in a state of ceasefire and holding peace talks with New Delhi, continue to impose high taxes. The NSCN’s Isak-Muivah faction collects Rs 5,000-10,000 annually from bus and truck operators, a daily Rs 100 fee for entry and exit into the state for buses and another Rs 3,000-7,000 from bus ticket counters. The Khaplang faction also collects similar taxes. The NNC’s tax rates are lower. Strangely, the police also take Rs 100 for every bus entering the state. The government has promised to talk to the militants and ask them to lower rates!