New Delhi | Jagran News Desk: To generate more revenues amid the coronavirus crisis which has affected the economy badly, several states in India have added additional Value Added Tax (VAT) and cess on the petrol and diesel prices leading to an increase in the prices.

Nagaland, on Thursday, became the third state to do so and announced a cess of Rs 6 per litre on Petrol prices and Rs 5 per litre on diesel prices from today onwards. The decision by the Ngaland state government came after Assam and Meghalaya implemented the similar measures.  

A notification issued by the Nagaland government said, "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."

Earlier last week, the Assam government had also decided to increase the petrol and diesel prices predicting around 50 per cent los in revenue due to the slash in oil prices in the international market.  The BJP-led Assam government in the order stated fixed the VAT for diesel at 23.66 paise in the rupee or Rs 17.45 per litre, whichever is higher. Similarly the VAT for petrol and other motor spirits were fixed at 32.66 paise in the rupee or Rs 22.63 per litre, whichever is higher.


Meghalaya, too had announced the increase in petrol and diesel prices by adding surcharge and sales tax, last week. Petrol prices in the state were incresed from Rs 68 to Rs 72 per litre, while the diesel prices were increased from Rs 61 per litre to Rs 66 per litre.  

“The decision to hike the price of petrol and diesel was done with the objective to increase the revenue of the State Government. We are aware that the expenditure required by the State Government for combating Covid-19 is huge. We have taken this small step to increase our revenue generation," Prestone Tynsong, Deputy Chief Minister of Meghalaya, had said.

Massive slump in global oil prices have created ground for governments to further increase excise duty on petrol and diesel to meet additional expenditure needs arising from the coronavirus outbreak.

Official sources had earlier hinted that the global oil market could easily allow the government to increase excise duty on petrol and diesel by Rs 3-5 per litre without impacting their pump prices, providing additional revenue between Rs 45,000-75,000 crore during 2020-21.



(With Agencies Inputs)

Posted By: Talib Khan