Dimapur, May 1: Additional Chief Secretary & Finance Commissioner, Sentiyanger has justified the increase in the rate of tax on petroleum products in the form of COVID-19 cess by the Government of Nagaland, saying this was done to supplement the resources of the State in fighting the COVID-19 pandemic.
The levy of the cess on High Speed Diesel and Motor Spirit (Petrol) at the rate of Rs 5 and Rs 6 per litre respectively has been enforced effective from the midnight of April 28, 2020.
The COVID-19 cess on petroleum products is expected to generate additional revenue of Rs 55.58 crore annually, he said at a press conference today.
Sentiyanger said the specific mention of COVID-19 in the cess has been done to ensure utilization of the revenue generated for COVID-19 pandemic related activities. This cess will be withdrawn once the threat of the COVID-19 pandemic is formally declared to be over, he said.
The Finance Commissioner maintained that the impact of COVID-19 pandemic is not an issue to be viewed solely from the medical angle but also view its devastating impact in the social and economic spheres.
He said the economic challenges are apparent with manufacturing and services sectors that have closed down with retrenchment of workers which has resulted in huge negative impact on the tax revenues of governments around the world over. He added that India having gone into lockdown since 25th March, 2020 which has negatively impacted the revenues of the Central Government as well as that of the States and Union Territories. (Page News Service)