Nagaland State govt orders ULBs to stop toll, entry fees

Municipal Affairs Department has directed all Municipal and Town Councils to cease collection of certain taxes and fees with immediate effect.
In an order dated February 23, 2026, issued by additional secretary T. Nchumbemo Odyuo, the department referred to Home department notification dated May 19, 2022, Municipal Affairs Department notification dated November 16, 2021 and letter dated September 25, 2025 regarding closure of check gates (toll gates) and ban on taxes/fees on items and goods under the Goods and Services Tax (GST) regime by Urban Local Bodies (ULBs).
The order stated that several complaints had been received regarding levy of such taxes and fees by Dimapur Municipal Council (DMC), East Dimapur Town Council (EDTC) and Zunheboto Town Council contrary to the directives.
Invoking powers under Section 81 of the Nagaland Municipal Act (NMA), 2023, the department directed all Municipal and Town Councils to cease collection of– tolls and urban utility fees; tolls on goods/empty vehicle entry fees and vehicle entry fees.
The department clarified that the power to impose taxes/fees on items listed under Section 124 of the Act is subject to prior Government sanction, for which no approval has been accorded.
It further directed that structures erected for such collections be dismantled or removed with immediate effect and on or before March 6, 2026.
DC directs DMC, EDTC
Meanwhile, Deputy Commissioner (DC) Dimapur, Dr. Tinojongshi Chang has also directed Dimapur Municipal Council (DMC) and East Dimapur Town Council (EDTC) to strictly comply with government directives on closure of unauthorized check gates and toll gates.
In a letter dated February 23, addressed to DMC Chief Executive Officer and ADC & Administrator of EDTC, the DC referred to complaints regarding levy of taxes by DMC and EDTC at check gates and toll gates.
Citing government notifications, the DC stated that all check gates except duly approved inter-state check gates were to be closed and specifically directed that check gates set up by departments, municipal councils, town councils, organisations, groups or private individuals be closed immediately unless prior approval of the Home department had been obtained.
DC also cited the Municipal Affairs Department letter dated September 25, 2025, which clarified that levy of nominal tax on non-GST import/export items through issuance of coupons, as recommended by the 3rd State Finance Commission, was not accepted by the state government and should be kept in abeyance till further orders.
Further, DC pointed that the letter also clarified that levy of toll tax was not permissible at present due to the blanket ban imposed on toll gates by the Home department vide notification dated May 19, 2022.
In this regard, DC Dimapur directed the authorities concerned to immediately remove or cancel all unauthorized check gates and toll gates set up within their respective jurisdictions without prior government approval and to submit an action taken report for further necessary action.