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Nagaland impose Covid-19 cess on petrol and diesel sales

Nagaland impose Covid-19 cess on petrol and diesel sales

Nagaland has imposed a Covid-19 cess on petrol and diesel sales, the first state to introduce such a levy. Experts say the move could coax other sates to impose a similar levy, which will be detrimental to the fragile economy.

Nagaland, which does not have any novel coronavirus case, imposed a Covid-19 cess of Rs 5 per litre on diesel and Rs 6 per litre on petrol and other motor spirits through a notification issued on April 28.

“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 notification said.

States are facing revenue constraints with all economic activity coming to a halt following the nationwide lockdown since March 24. Petrol and diesel taxes have significant share in total revenues.

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