The Government of Nagaland has directed all Municipal and Town Councils in the state to immediately cease the collection of certain taxes and fees, citing lack of prior government sanction under the Nagaland Municipal Act 2023.
In an order issued by the Municipal Affairs Department on February 23, the government referred to earlier directives concerning the closure of check gates and the ban on taxes and fees on goods under the Goods and Services Tax (GST) regime. It noted that several complaints had been received regarding the continued levy of such charges by Dimapur Municipal Council, East Dimapur Town Council and Zunheboto Town Council, contrary to existing instructions.
Invoking powers under Section 81 of the Nagaland Municipal Act 2023, the department directed all Urban Local Bodies (ULBs) to stop collecting tolls and urban utility fees, tolls on goods and empty vehicle entry fees, and vehicle entry fees with immediate effect.
The order stated that powers to impose taxes and fees under Section 124 of the Act require prior government sanction, which has not been granted.
All structures erected for collection of such fees are to be dismantled or removed on or before March 6, 2026.