Government orders municipal councils to stop tax collections

Kohima, February 23 (MExN): In a move to enforce GST compliance and earlier government directives, the Commissioner & Secretary to the Government of Nagaland, Kekhrievor Kevichusa, has directed all municipal and town councils to immediately cease the collection of certain taxes and fees. 

The order, issued today, cited several contravention complaints with regard to the levying of taxes and fees by Dimapur Municipal Council, East Dimapur Town Council, and Zunheboto Town Council.

It referred to the Home Department Notification dated May 19, 2022, and Municipal Affairs Department notifications from November 2021 and September 2025, which pertain to the closure of check gates (Toll Gates) and ban on levying taxes/fees on items and goods under GST. 

The directive stated that the power to impose taxes and fees for items listed under Section 124 of the NMA 2023 is subjective to the previous sanction of the government and for which no such sanction has been accorded.  

Therefore, all municipal and town councils have been directed to scrap the collection of specific levies, including “tolls and urban utility fees; tolls on goods/empty vehicle entry fees; and vehicle entry fees.”

Furthermore, the government has ordered that all structures erected for such collection should be dismantled and removed on or before March 6, 2026. 



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