Jharkhand Trade Body Opposes Draft Path Tax, Warns of Price Hikes and Small Business Impact
Chamber of Commerce says new levy on commercial vehicles will disrupt trade, burden local businesses, and violate the principle of One Nation, One Tax.
The Jharkhand Chamber of Commerce has strongly opposed the draft Jharkhand Municipal Path Tax Rules, 2025, calling the proposal “unworkable” and contrary to the spirit of One Nation, One Tax. Released by the state’s Urban Development and Housing Department, the draft suggests imposing an additional levy on commercial vehicles, which the Chamber warns would raise transport costs, disrupt trade, and ultimately increase prices of essential goods.
At a meeting held on Sunday, office-bearers stressed that the new levy would amount to double taxation, as vehicle owners already pay motor vehicle tax, toll tax, GST, and bus stand fees. “The brunt will fall on small traders, transport operators, and consumers,” said General Secretary Rohit Agarwal.
Chamber president Aditya Malhotra added that the move could weaken Jharkhand’s industrial and commercial competitiveness compared to neighbouring states such as Bihar, West Bengal, and Odisha. He also highlighted concerns over tax collection at city entry points, which could worsen congestion and delay deliveries, particularly affecting perishable goods.
The Chamber emphasized that the proposed path tax undermines the GST regime’s promise of a unified taxation system. Feedback consolidated from associations across the state has been submitted to the government, urging reconsideration of the draft rules. “We appeal to the minister and department secretary to withdraw this proposal,” Malhotra said.
