Tax on fuels hiked in Nagaland

The Nagaland government has hiked tax on diesel, petrol and other motor spirit from Thursday, an official notification said.

Additional Chief Secretary and Finance Commissioner Sentiyanger Imchen said in the notification that the tax on diesel has been hiked from the existing 14.5 per cent to 17.50 per cent or Rs 11.08 per litre, whichever is higher.

Tax on petrol and other motor spirits has been increased from 25 per cent to 29.80 per cent or Rs 18.26, whichever is higher, the notification said.

The tax revision has been done in exercise of powers conferred by the Nagaland (Sale of Petroleum and Petroleum Products including Motor Spirit and Lubricants) Taxation Act 1967, he said.

Opposition Naga Peoples Front has criticised the decision of the People's Democratic Alliance (PDA) government in the state to enhance the tax levied on petrol and diesel prices.

"When the PDA government's formula to raise money from the public through Covid-cess was withdrawn after it was rejected by Naga people, the government has come up with a new way to pump money from the public," a release issued by the NPF said.

The NPF attacked the state government over the steep hike in the fuel prices, terming it as a "cruel decision", since people are already reeling under the economic hardship caused by the pandemic. The NPF urged the government to roll back the hike in fuel prices "before it becomes too late to control its impact on a beleaguered and stressed society", the release said.

The Nagaland government had imposed a Covid-19 cess of Rs 5 on per litre of diesel and Rs 6 on per litre of petrol and other motor spirits from April 28 to utilise the amount for tackling the Covid-19 crisis.

However, following stiff opposition from political parties, tribal organisations and apex students' body, the state government decided to revoke the COVID-19 cess on September 23.