The Nagaland government has directed all Urban Local Bodies (ULBs) to immediately stop collecting tolls, entry fees and certain other charges across the state.
In an order issued on February 23, 2026, the Municipal Affairs Department asked all Municipal Councils and Town Councils to cease collection of tolls and urban utility fees, tolls on goods, empty vehicle entry fees and vehicle entry fees. The order was issued by Additional Secretary T. Nchumbemo Odyuo.
The department referred to earlier notifications of the Home Department dated May 19, 2022, and the Municipal Affairs Department dated November 16, 2021, along with a letter dated September 25, 2025. These communications had directed closure of check gates and imposed a ban on taxes and fees on items covered under the Goods and Services Tax (GST) regime by ULBs.
The latest order stated that several complaints had been received against the Dimapur Municipal Council, East Dimapur Town Council and Zunheboto Town Council for allegedly continuing to levy such taxes and fees despite earlier directives.
Invoking powers under Section 81 of the Nagaland Municipal Act, the department directed that all such collections must stop immediately. It also clarified that the power to impose taxes or fees on items listed under Section 124 of the Act requires prior government sanction, and no such approval has been granted.
The department further ordered that structures set up for collection of these tolls and fees must be dismantled or removed on or before March 6, 2026.
Meanwhile, Deputy Commissioner of Dimapur Dr. Tinojongshi Chang also issued a separate directive to the Dimapur Municipal Council and East Dimapur Town Council to strictly follow the government’s instructions.
In a letter dated February 23, addressed to the Chief Executive Officer of DMC and the ADC and Administrator of EDTC, the DC referred to complaints regarding levy of taxes at check gates and toll gates. He reiterated that all check gates, except duly approved inter-state check gates, must be closed immediately.
The DC also cited the Municipal Affairs Department letter dated September 25, 2025, which clarified that the state government had not accepted the recommendation of the 3rd State Finance Commission to levy nominal tax on non-GST import and export items through coupons. The matter, the letter said, should remain in abeyance until further orders.
It was further clarified that levy of toll tax is not permissible at present due to the blanket ban imposed by the Home Department in its May 19, 2022 notification.
The Deputy Commissioner directed the authorities concerned to remove or cancel all unauthorized check gates and toll gates set up within their jurisdictions without prior government approval. He also asked them to submit an action taken report for further necessary steps.
