The banned United Liberation Front of Assam has imposed 'tax on every Indian' living in Assam, throwing the peace initiative to wind, even as the Army resumed counter-insurgency operation in the state on Sunday.

ULFA commander in chief Paresh Baruah, in a statement issued over phone to a section of local media in Guwahati on Saturday night, announced the group's decision to impose 'mandatory tax on Indians' living in Assam. The militant leader sought 'voluntary donations' from the 'indigenous people' of the state.

By 'Indians' the ULFA commander referred to people from outside the Northeast who are earning their bread in Assam and by 'indigenous people' he meant sons of the soil from Assam and other Northeastern states.

It is for the first time the ULFA, which took root in the state in April 1979, has made such an attempt to impose mandatory tax on the populace although extortion demands served by the militant group on people from different walks of life has been a common knowledge.

The state government has taken strong exception to 'imposition of tax' by the banned outfit. Assam government spokesman and a cabinet minister Himanta Biswa Sharma made it clear that the government will not allow any organization to collect tax of from any citizen in the state.

"Every citizen of India living in the state has equal rights," he said on Sunday morning.

Meanwhile, the Army resumed its operation against the ULFA on Sunday, as the Centre called off its ceasefire with the ULFA after the outfit failed to send in the 'letter of commitment' for direct talks sought by the government.

The Centre had suspended the Army operation since August 14 to September 20 last to allow the ULFA time to send in the letter of commitment, but in vain. A security source informed that the Army has re-launched counter insurgency operation in Upper Assam areas where the ULFA militants killed two persons, including a tea garden manager and a policeman during the last couple of days.