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Nagaland Finance department clarifies fuel tax hike

By EMN Updated: Nov 17, 2020 11:01 pm

Dimapur, Nov. 17 (EMN): Facing criticisms for its decision to hike tax on petroleum products, the Finance department of Nagaland has clarified that Nagaland is not the only state to raise the price of petroleum products in the midst of the pandemic.

On Tuesday, the department issued figures pointing out that it has fixed ‘very reasonable rates’ of tax on petroleum products compared to other states, and there is no reason to term it as oppressive. (See table I)

“It is also clarified that despite the substantially lower rates of taxes of the government of Nagaland, the prices of petrol and diesel remain high mainly on account of the high base value of petrol and diesel in the state, which is higher than even that of Manipur. The reason for such difference is being taken up with the IOC for clarification since it is decided exclusively by the oil marketing company,” read the statement.

It went on to state that the price of petrol and diesel in Nagaland is cheaper than Assam and Meghalaya while it is very close to that of Manipur. (See table II)

According to the department, it is clear that the oil company is fixing the base value unfairly in respect of Nagaland, which is directly resulting in high price of petrol and diesel in the state even though the rate of tax is considerably lower than that of Assam and Manipur. “The state government has asked IOC Ltd. to explain the reasons for the higher base value of petrol and diesel as compared to neighbouring state of Manipur,” it added.

By EMN Updated: Nov 17, 2020 11:01:41 pm