The Gorkhaland Territorial Administration (GTA) has intervened to halt the collection of “tourist tax” by the Darjeeling municipality until a proper policy is framed on the levy.

GTA chief executive Anit Thapa said he wanted a proper policy to be framed detailing every aspect of the collection of "tourist tax".

“I have asked the executive director of the GTA to study this issue. We have to detail every aspect, right from the method of collection to the utilisation of the funds. It should be utilised for a specific purpose,” said Thapa. “Until then, the Darjeeling municipality will not collect taxes.”

The GTA has supervisory powers over the municipality. The civic body is under the control of Thapa’s Bharatiya Gorkha Prajatantrik Morcha (BGPM).

“While the collection of tax might be necessary, the process was perhaps not right. The civic body has to sit with hoteliers first. Before formulating the policy, our officials should also study how such collections are being done at other tourist places in the country,” said Thapa.

Municipality officials said they hadn't started the tax collection and the plan would be shelved following the GTA's directive.

Apart from hoteliers, drivers also opposed the move by the Darjeeling municipality. The Opposition parties in the hills questioned the base price of the tender that was floated to choose the agency for the collection of the tax.

“The municipality had kept a base price of Rs 25 lakh. The highest bidder offered Rs 28,25,000 as the contract amount,” the source said.

The Opposition parties said the base price was low as Darjeeling which receives around 10 lakh visitors annually has the potential to collect Rs 2 crore as "tourist tax".

The agency was allowed to charge Rs 20 per visitor (aged above five) a day.

“Defining a tourist is also important. This is why we want to come up with a detailed policy. While framing our policy, we also have to keep in mind that tourists visit other hill towns like Mirik, Kalimpong and Kurseong,” said Thapa.

The Darjeeling municipality had made three unsuccessful attempts to collect tourist tax before.

Many hoteliers said the collectors had come and “demanded” to see hotel register at their “own timing” in the past. “The collectors ask us to take the tax and hand it to them. It is not our job,” said a hotelier.