Nagaland has been caught in a paradox for nearly thirty years, where a constitutional government sits beside an economy overrun by unofficial authorities demanding money under the guise of taxes, levies, donations, and “voluntary contributions.” The proliferation of these demands has turned extortion into an institutionalized practice, with the state largely silent.
The scale of the problem is striking. In 1997 Nagaland had four armed factions; after a ceasefire that year the number rose to six, and today as many as 37 groups identify themselves as Naga political groups. In Dimapur alone, about 350 unions, associations, and syndicates operate in ways that justify collections from businesses, traders, and vendors, creating a parallel economy that thrives on fear.
The impact on commerce is severe. Businesses can lose 30 to 40 percent of their earnings to illegal collections, discouraging investment, driving up prices, and leaving infrastructure inadequate. Ordinary citizens live under constant anxiety, and the state’s failure to curb these practices betrays the promise of the Naga struggle.
Public opposition has grown. In 2013, the ACAUT Nagaland rally drew more than 40,000 participants with the clear message “One Government, One Tax.” The Kohima Chamber of Commerce and Industry has echoed this principle, urging traders and commercial establishments to reject unauthorized taxation and recognize only the constitutional government’s authority. Collective action, coupled with impartial law enforcement, is now seen as essential to ending the crisis and restoring the rule of law in Nagaland.
