coronavirus update indiaas on : 26 September 2020 05:31 GMT+5:30
Coronavirus: Nagaland Becomes First State To Levy Cess On Petrol And Diesel
Nagaland will charge a cess of Rs 5 of per litre on diesel and Rs 6 on petrol and motor spirit amid the unprecedented financial crisis triggered by the COVID-19 pandemic.
NEW DELHI: The state government of Nagaland announced that it will charge a cess of Rs 5 of per litre on diesel and Rs 6 on petrol and motor spirit amid the unprecedented financial crisis triggered by the COVID-19 pandemic, making it the first Indian state to do so.
"In exercise of power conferred by subsection 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," the Additional Chief Secretary and Finance commissioner Sentiyanger Imchen in a notification said.
Recently the prices of petrol and diesel was increased by Rs 5 per litre in Assam. In order to combat falling revenue, Meghalaya announced a 2 per cent sales tax surcharge.
Many ministers of different states had shown concern about falling incomes with economic activity grinding to almost to a halt after Prime Minister Narendra Modi announced a nationwide lockdown last month to curb the spread of COVID-19.
Beginning from March 25, the lockdown is up for an extension in parts of the country once it expires nation-wide on May 3 is expected to severely impact direct and indirect tax collections, which were already suffering from an economic slowdown before the pandemic.