Kohima, June 17: The residents of Dimapur, the commercial hub of Nagaland, will observe a strike tomorrow in protest against the so-called taxation and extortion by militant outfits in the name of “Naga nationalism”.

The 12-hour strike was called by the Action Committee Against Unabated Taxation and supported by several organisations in the state. Schools and colleges would also remain closed for the day in support of the strike.

The committee, headed by the Naga Council of Dimapur, has asked the National Socialist Council of Nagalim (Isak-Muivah) to do away with the dealership and syndicate system in Dimapur.

The outfit controls important businesses in Dimapur and other important towns in the state and charges “taxes” that lead to escalation in prices of essential commodities. The state government has always remained a mute spectator as the rebels run a parallel government. Chief minister Neiphiu Rio justifies their action by saying they do it to “sustain” themselves, as the Centre has not given them sustenance options while signing ceasefire agreements.

The strike call was given after a meeting between the organisations and militant outfits failed to evoke a positive response from the rebels, particularly the NSCN (I-M). The committee had asked the outfit to reveal the names of its functionaries engaged in the dealerships and syndicates. Several top rebel functionaries are also liquor barons despite the fact that Nagaland has been a dry state since 1989.

The committee said the state government had not taken any step to stop illegal “tax” collection by militants except making vague references to their rehabilitation or sustenance packages.

The committee’s co-convener, L. Supong Ao, said it was committed to fight unabated taxation and illegal collections from militants and government agencies.

The Dimapur Chamber of Commerce and Industries, while extending support to the strike, has urged the government to ban all organisations collecting money randomly for individual benefit. “The problem of exorbitant taxes and inflation or price-rise is taking a heavy toll on the consumers,” the chamber’s president, Hokivi Chishi, said.

The NSCN (Khole-Kitovi) has alleged that the state government was the main source of corruption, with ministers and government officials taking a 40 per cent cut from every contractor and supplier. It also asked to the government to stop such malpractice.

The NSCN (I-M) has said every Naga living in Nagalim (Naga-inhabited areas) must pay tax for the Naga national cause. There currently there are seven militant outfits engaged in illegal “tax” collection in the state — NSCN (I-M), NSCN (Khole-Kitovi), Naga National Council (Adinno), NNC, V. Nagi, NNC (Hozheto) and Federal Government of Nagaland (Singnya).