Nagaland levied COVID-19 cess on diesel and petrol

Nagaland Government on Wednesday levied a COVID-19 cess of Rs 5 per litre for diesel and Rs 6 for petrol and motor spirit. The imposition of the cess has increased the prices of fuel by in the state.

Reportedly, the state government notified the implementation of the COVID-19 cess effective from midnight April 28, 2020. With this notification, Nagaland became the first state in India to impose a COVID-specific cess.

Additional Chief Secretary Sentiyanger Imchen, who is also the Finance Commissioner, said the cess was expected to help generate revenue as the State was experiencing a fiscal crisis due to the pandemic.

Cess was expected to help generate revenue as the State was experiencing a fiscal crisis due to the pandemic, said Sentiyanger Imchen, Additional Chief Secretary of Nagaland. Mr Imchen is also the Finance Commissioner of the state.

Other states that have levied taxes on fuel despite a dip in international oil prices

Meghalaya and Assam are the other two states who have levied taxes on fuel despite a dip in international oil prices.

Assam government has increased tax on diesel to Rs 5 per litre and petrol to Rs 6 per litre.

Meghalaya has levied sales tax surcharge at 2 per cent on motor spirit including petrol, diesel oil and other internal combustion. However, motor spirit used as fuel for aircraft; diesel oil and other internal combustion oil were excluded from the levied surcharge.

Besides, the Nagaland government has also decided not to clear the dearness allowance (DA) and dearness relief (DR) to state government employees and pensioners up to January 2021. The government has cited the crisis arising out of COVID-19 as a reason for stopping the clearances. They were payable from January 1, 2020.