Hardware Merchants’ Association of Dimapur district has urged municipal affairs department to immediately control the surge in collection of entry tax on vehicles witnessed since introduction of lease system of toll collection.
The association also warned of taking its own course of action in the event of failure to withdraw the hike that would ultimately affect the public
In a press release issued by its president K Denis, the association pointed out that earlier, entry tax per vehicle for mild steel (MS) rod was Rs 350 for a six-wheeled vehicle and Rs 450 for a 12-wheeled vehicle. However, since the toll tax was leased out, the toll tax was collected at the rate of Rs 50 per metric tonne (MT), instead of per-vehicle basis since October 1.
Thus, with the introduction of lease system by Dimapur Municipal Council (DMC), the entry tax jumped to Rs 3,500 per vehicle for a 12-wheeler vehicle (70 MT). This, according to the association, was taking a huge toll on transporters and eventually affecting customers.
The traders said the burden eventually fell on customers, who had to bear the brunt for no fault of theirs but due to a flawed policy decision made by the municipal affairs department in leasing out toll collection. Moreover, DMC was not a sales tax/GST department to collect tax on commodities and could only collect entry tax per vehicle, not commodity-wise, they added.
Stating that commodity-wise tax collection at the entry gate was not acceptable, the association further pointed out that, with the new tax rate, the merchants were apprehensive of facing unfavourable reaction from the customers, adding that it did not want the public to suffer due to the issue.
The statement had been issued purely in the interest of public, who would have to bear the “extra unnecessary burden”, the release added.