Dimapur: The Nagaland Municipal Affairs Department has directed all Municipal and Town Councils to immediately stop collecting certain taxes and fees, including tolls and urban utility charges, following repeated violations of government directives.
The order, issued by Additional Secretary T. Nchumbemo Odyuo, cited earlier notifications from the Home Department, the Municipal Affairs Department, and a letter regarding the closure of check gates and the prohibition on levying taxes or fees on goods under the Goods and Services Tax regime by Urban Local Bodies.
Several complaints had been received against the Dimapur Municipal Council, East Dimapur Town Council, and Zunheboto Town Council for continuing to levy fees and tolls despite the directives. Invoking powers under Section 81 of the Nagaland Municipal Act, 2023, the department instructed councils to cease collection of tolls, urban utility fees, vehicle entry fees, and charges on goods and empty vehicles.
The order clarified that the authority to impose taxes or fees on items listed under Section 124 of the Act requires prior government approval, which has not been granted. All structures set up for such collections are to be dismantled or removed immediately, and no later than March 6, 2026.
In a parallel directive, Deputy Commissioner of Dimapur, Tinojongshi Chang, instructed the DMC and EDTC to comply fully with government orders on the closure of unauthorized check gates and tolls. Addressing the Chief Executive Officer of DMC and the ADC and Administrator of EDTC, Chang referred to complaints about the collection of taxes at check and toll gates.
He emphasised that all check gates, except duly approved inter-state gates, must be closed. Any gates established by departments, municipal or town councils, organisations, groups, or private individuals without Home Department approval must be removed immediately.
The Deputy Commissioner also cited a previous Municipal Affairs Department letter, which clarified that the levy of nominal taxes on non-GST import and export items, as recommended by the 3rd State Finance Commission, had not been approved by the state government and must remain suspended until further notice.
Chang highlighted that the Home Department had imposed a blanket ban on toll collection, and he directed authorities to submit an action-taken report following the removal of all unauthorized gates.