Nagaland imposes Covid-19 cess on diesel, petrol to meet financial exigencies amid lockdown

Nagaland government on Tuesday has imposed Covid-19 cess on diesel and petrol to meet the financial exigencies arising out of the novel coronavirus pandemic.

Nagaland government has imposed Covid-19 a Rs 5 per litre cess on diesel and Rs 6 per litre on petrol and other motor spirits.

In a notification issued by the finance deparment, the state government said, “In exercise of powers conferred by sub section 3 of section 3A of the Nagaland (Sales of Petroleum and Petroleum Products including Motor Spirit and Lubricants) Taxation Act, 1967 (as amended), the Governor of Nagaland is pleased to notify that in addition to existing rate of tax and cess, the COVID-19 Cess shall be levied against Entry Serial Number 3 & 4 of Schedule II of the Act.”

The Covid-19 cess on diesel and petrol in the state will come into effect from April 28 midnight.

Nagaland Chief Secretary Temjen Toy said that due to the lockdown the state has faced major problems to earn revenue collection.

“In March, our target was Rs 106 crore, but, the state collected Rs 5 crore only. All sources of revenue collection in the state have been stopped. A state like Nagaland is always dependent on the Centre. In a bid to increase our revenue in current situation, we have decided to impose Covid-19 cess on diesel, petrol and other motor spirits,” Temjen Toy said.

Earlier, the Assam government had also hiked prices of diesel and petrol in the state by Rs 5 on April 21.