Local groups like National Socialist Council of Nagaland’s Isak-Muivah faction (NSCN-IM) or Khaplang run ‘parallel government’ in Nagaland beside the state government in their respective areas; they also collect parallel tax from salary-earners, business shops and transport vehicles. After the note ban order issued by the Indian government, there has been a sharp decrease in the amount of collected tax for these local governments. They are planning their budget according to that.
These local governments charge annual ‘House Tax’ per house and ‘Income Tax’ for salary earners. They also charge for issuing ‘work permit’ to outsiders. It is reported by local sources that shop taxes vary according to the condition of market economy. Tax is also collected from goods trucks which enter the state. However, overall economy of the local governing groups is largely affected after the center’s decision of banning banknotes of Rs500 and Rs1000.
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