The Jharkhand Chamber of Commerce has strongly opposed the draft Jharkhand Municipal Path Tax Rules, 2025, released by the state’s Urban Development and Housing Department, calling the proposal “unworkable” and “against the spirit of One Nation, One Tax.”
At a meeting held at the Chamber building on Sunday, office-bearers said that imposing an additional levy on commercial vehicles would disrupt trade, burden small businesses and transporters, and ultimately raise the cost of essential goods. “This amounts to double taxation since vehicle owners are already paying motor vehicle tax, toll tax, GST, and bus stand fees,” the Chamber stated in its memorandum to the department.
The Chamber warned that transport costs would rise sharply if the new levy is implemented, pushing up prices of essential items and services. Small traders and transport operators, it said, would be hit the hardest. “The brunt will fall on local shopkeepers and consumers,” General Secretary Rohit Agarwal said, adding that suggestions and objections from across the state had been forwarded to the department.
Chamber president Aditya Malhotra argued that the proposal would damage Jharkhand’s industrial and commercial competitiveness compared to neighbouring states such as Bihar, West Bengal, and Odisha. “Such a move discourages investment and sends a wrong signal about Jharkhand’s business climate,” he said. Members also raised the issue of tax collection at city entry points, warning that it could worsen congestion and disorder in urban areas. “It will choke supply chains, delay deliveries, and especially hurt the movement of perishable goods,” one participant noted.
The Chamber underscored that the proposed path tax runs counter to the GST regime’s promise of a unified taxation system. “This goes against the very spirit of One Nation, One Tax,” the memorandum said. The opposition from the state’s largest trade body is likely to put the government on the defensive, with critics suggesting the proposal reflects an attempt to shore up municipal revenues at the cost of trade and consumers. Business leaders hinted that the issue could escalate if the draft rules are not withdrawn.
The Chamber said it had consolidated feedback from associations across the state and urged the government to reconsider. “We appeal to the minister and the department secretary to roll back this proposal,” Malhotra said.