Taxes department generates 85% of Nagaland’s revenue—Advisor

DIMAPUR — The Taxes department generates 85% of Nagaland’s own revenue making it the “best performing department” in the state, according to Kudecho Khamo, advisor for Taxes and Civil Administration Works Division (CAWD).

Speaking at the closing function of the two-day “GST Refresher Training-cum-Stakeholder’s Meet 2024,” held at Niathu Resort, Chümoukedima, on Friday, Khamo expressed confidence in the department’s potential for further improvement in revenue collection and efficiency. He emphasised the need for vigilance and prompt enforcement of tax compliance to ensure honesty and transparency within the system.

The advisor highlighted Nagaland’s pioneering role in the Northeast region by successfully implementing Aadhaar-based biometric authentication for GST registration, to prevent fraudulent registrations. He also assured that the department is working towards seamless integration of Professional Tax and developing a payment gateway for easy online payment of this tax. 

“All efforts will be made to leverage available technology for ease of payment of taxes, which will benefit the entire business community,” he said. He urged the department to continue educating, sensitising, and updating taxpayers regularly to ensure their well-being and efficient business operations.

Acknowledging the department’s challenges, Khamo stated that the state government has undertaken projects to address infrastructure and conveyance issues, including the construction of a new directorate building in Dimapur. He also recognised the need for upgrading outdated IT infrastructure and assured that the government will take necessary steps to ensure smooth and efficient tax services.

Wider tax base

Deputy Chief Minister TR Zeliang, also addressed the gathering, noting that today, from small and medium enterprises to large corporations, GST has become integral to operations, making a strong grasp of the system essential for successful business turnover.

He also highlighted the significance of understanding Input Tax Credit (ITC), a key feature of GST, which can significantly impact business finances when managed effectively. He pointed out that Nagaland, being a consumer state, has greatly benefited since the implementation of GST in 2017, with the state witnessing a tremendous improvement in sales tax revenue compared to the earlier tax regime.

Zeliang further stressed the need to widen the tax base by bringing all liable dealers into the GST system and preventing tax evasion. “Toward this end, I strongly encourage tax officials to remain vigilant and ensure effective tax administration with transparency and accountability”, he said, adding that regulations provided under the GST Act should be utilised to plug loopholes and streamline the process of revenue collection.

The event was attended by several officials, including Advisor for Education, Dr. Kekhrie Yhome, and Assistant Vice President, Training Design and Delivery, GST Network, Satheshwaran Kalyanasundaram.