The Jharkhand government has implemented the Jharkhand Municipal Path (Road) Tax Rules, 2025, which mandates a tax on all commercial vehicles entering the limits of municipal corporations, councils, and panchayats across the State. The move, aimed at generating municipal revenue, has drawn strong opposition from the trading community. The community termed it an unnecessary financial burden on traders and transporters.
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Traders Expressed Concern Over Additional Financial Burden
In a formal letter to the State Government, Singhbhum Chamber President Vijay Anand Moonka and General Secretary Manav Kedia argued that the new rule will disrupt the movement of small traders and transporters between cities and increase the cost of goods and services. They said that commercial vehicles in Jharkhand already pay substantial taxes, including up to 15% annual road tax, and introducing another entry levy will add to operational costs and inflationary pressures.
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New Road Tax Rule to Cover All Municipal Areas in Jharkhand
According to the Urban Development Department’s notification, the new rule will apply in all regions governed under the Jharkhand Municipal Act, 2011. The tax will be levied on all types of commercial vehicles, including goods carriers, passenger transport vehicles, and other business use vehicles entering urban limits. However, two-wheelers, three-wheelers, e-rickshaws, ambulances, fire tenders, school buses, and Government vehicles will be exempted. Payment will be facilitated via FASTag or smart cards, with a 20% concession on digital payments. The tax validity will extend for 24 hours from the time of payment.
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Business Community Called for Reconsideration
The Chamber warned that setting up toll gates at every municipal entry point would slow logistics, discourage inter-city trade, and strain small-scale businesses. “No other state in India follows such a system. This move will discourage investment and complicate goods movement,” said Moonka. The Chamber demanded that the Government review or withdraw the rule to prevent a negative impact on the State’s Commercial Ecosystem.
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Government Invites Public Feedback Before Final Implementation
The Urban Development Department has invited objections and suggestions from the public and institutions within one month before finalizing the rule. Officials said the measure was designed to strengthen municipal finances and maintain urban roads. However, business groups maintain that the rule could prove counterproductive by raising transport costs and hurting small traders at a time when the economy is still stabilizing post-pandemic.
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