Underground Taxation Squeezes Nagaland’s Small Businesses

Nagaland’s entrepreneurs are confronting a wave of unofficial taxes that business groups say are undermining profitability. The levies, described as “underground” because they are imposed outside formal tax structures, are being collected by local intermediaries and are not recorded in official accounts. Small‑scale traders and start‑ups report that the extra cost erodes margins and discourages investment in the region. Industry observers warn that sustained pressure could stall the state’s efforts to diversify its economy beyond agriculture and tourism. The Goa Chronicle highlighted the issue, urging authorities to address the informal tax burden to protect the entrepreneurial climate.