The repealing of the Nagaland Municipal Act 2001 should not be misconstrued that municipal and town councils are not needed. It was basically repealed by the state government in order to enact a new law so that elections to the Urban Local Bodies can be held. While the tribal bodies and civil society organizations demanded amending of the Act by deleting certain sections that were perceived to infringe on Article 371A, there is a possibility that the Nagaland Legislative Assembly repealed it in toto to buy some time and at the same time avoid the wrath of the Supreme Court.
The 74th Amendment of the Constitution mandated the setting up and devolution of powers to ULBs. Further, under Article 243Q, it became obligatory for every state to constitute ULBs. Accordingly, each municipal or town council is to have elected representatives from each ward, constituted for a period of 5 years and with 1/3 reservation for women. The ULBs are basically local self governance in action built upon the premise that all ‘power’ in a democracy rightfully belongs to ‘the people’. And the 74th amendment also entails ULBs to play decisive roles in planning, provision and delivery of services. ULBs are a form of devolution of power. The locals know the problems they face better than anyone else and, therefore, the ULBs are ideal vehicles to solve the local problems by the locals themselves.
Water supply, hospitals, roads, street lighting, drainage, fire brigade, market places, records of births and deaths, waste management, maintaining gardens, parks and playgrounds, and providing education to unprivileged children are some of the main functions of ULBs. Further, apart from receiving grants from the state and central governments, the ULBs are also empowered to raise revenue from various sources of income to sustain itself. Quite understandably, revenue from taxes is the primary source of income for any ULB. The income from taxes, including on houses, entertainment, electricity, vehicles, property, and land are some of the income sources. Toll tax is another important income source for a ULB. The ULBs may also generate income from commercial activities like renting and sale of municipal property.
Tax on land and building, along with 33% reservation of seats for women, may “infringe” on Article 371A but what about the other taxes? In the final analysis, the question is simply whether Nagaland should have ULBs or not as mandated by the constitution. If yes, then Naga people should be willing to pay taxes. The ULBs simply cannot function without revenue. Moreover, when the people pay their taxes, the authorities become more accountable.
That being said, it is hoped that a new Act will be drafted after due consultations and enacted into law very soon so that ULB elections can be held sooner than later. It is also hoped that Naga people will be willing and ready to pay certain taxes to run the ULBs once the new law is enacted. After all, we cannot live as freeloaders for ever and ever.