Jharkhand Chamber Warns Path Tax Will Burden Small Businesses and Push Up Prices

The Jharkhand Chamber of Commerce has raised strong objections to the draft Jharkhand Municipal Path Tax Rules, 2025, calling it “unworkable” and warning that it could negatively impact trade, businesses, and consumers across the state.

At a meeting held at the Chamber building, office-bearers highlighted that the proposed levy on commercial vehicles would increase transport costs, leading to higher prices of essential goods. “This is effectively double taxation, as vehicle owners already pay motor vehicle tax, tolls, GST, and bus stand fees,” said General Secretary Rohit Agarwal. He added that suggestions and objections from various organizations statewide had been consolidated and forwarded to the department.

Chamber President Aditya Malhotra cautioned that the new tax could weaken Jharkhand’s industrial and commercial competitiveness compared to neighbouring states such as Bihar, West Bengal, and Odisha. Members also expressed concern over potential congestion at city entry points, which could disrupt logistics and delay the delivery of goods, particularly perishables.

The Chamber’s memorandum emphasized that the proposed path tax contradicts the “One Nation, One Tax” principle under GST reforms. Malhotra urged the Urban Development and Housing Department to withdraw the draft, noting that the heaviest burden would fall on small traders and transporters, while consumers would face indirect cost increases.

The meeting was attended by Chamber President Aditya Malhotra, Vice-President Praveen Lohia, General Secretary Rohit Agarwal, and former President Kishore Mantri.