The Confederation of Nagaland Chamber of Commerce and Industry (CNCCI) has strongly responded to a recent statement made by the Dimapur Municipal Council (DMC) regarding the involvement of external organizations in local governance. The CNCCI emphasized the necessity of including business representatives in decision-making processes, referencing a government directive mandating consultations with the business community on business-related matters.
Earlier, the DMC stated that “ULBs are statutory entities endowed with both legislative and executive powers to govern local affairs. As such, it is not mandatory to consult any particular organisation on such matters, although suggestions are always encouraged and welcome.”
The CNCCI has refuted this stance, citing Government Order No. CON-6/LOR-II/2006(Vol-I), issued in September 2021, which directs administrators of urban local bodies (ULBs) to “include representatives from the business community of their cities and towns in their advisory committees when making decisions related to business activities.”
According to CNCCI, ULBs must involve the business community in decisions related to business operations, warning that failure to comply would not only breach government orders but also embarrass the state government. “Non-compliance will amount to contempt of government and cause embarrassment to the state government,” CNCCI stated.
Concerns over taxation issues
The CNCCI also responded to the Dimapur Chamber of Commerce and Industry’s (DCCI) recent concerns about the DMC’s collection practices and taxation policies. The DMC had earlier dismissed these concerns as “speculative and unwarranted.” In response, the CNCCI has urged the DCCI to urgently address these grievances with the DMC to ensure that the business community is not burdened beyond what is mandated by the Municipal Act and government guidelines.
“The CNCCI would like to inform the DCCI to urgently put forth its grievances to the DMC and ensure the business communities are protected and not burdened beyond what is mandated in Municipal Act and government guidelines,” the CNCCI emphasized.
Ongoing friction over governance in urban areas
This exchange highlights ongoing friction between the DMC and business bodies over governance in Nagaland’s urban areas, particularly concerning taxation and advisory roles. It is important to note that ULBs in Nagaland remained dormant for two decades, with elections only recently taking place.
The CNCCI made it clear that it expects the DMC and other ULBs to adhere to government guidelines by including business representatives in decision-making processes. Earlier this month, the CNCCI had also raised concerns about specific taxation and collection practices being implemented by ULBs, stressing the need for a cautious approach to avoid conflicts with existing state and central laws. The organization affirmed its full cooperation with the ULBs but underscored the importance of reviewing taxation and licensing practices to prevent monopolistic control, price hikes, and syndicates—issues that have plagued the state in the past.
Similarly, the DCCI has recently raised serious concerns about what it termed as an “unregulated and unjustified taxation regime” in Dimapur, Nagaland’s commercial hub, claiming it is crippling the local business community.
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