Government of Nagaland Increases Tax Rates on Petroleum Items

KOHIMA: The decision to amend the petroleum product tax rates has been made by the governor of Nagaland. The announcement states that the new rates would take effect at midnight on June 30, 2024. 

The authority granted by sub-section 3 of section 3A of the Nagaland (Sales of Petroleum and Petroleum Products including Motor Spirit and Lubricants) Taxation Act, 1967 has been utilized to carry out this alteration. The purpose of this action is to modify the rates outlined in Schedule II of the Act's Entry Serial Numbers 3 and 4. 

Diesel now has a 21.75 percent tax, or Rs. 16.94 per litre, instead of the previous 25 percent tax, or Rs. 16.04 per litre. The tax rate on gasoline and other motor spirit has been changed from 25 percent, or Rs. 16.04 per litre, to 21.75 percent, or Rs. 16.94 per litre.

The notice also revokes earlier announcements dated November 16, 2004, February 14, 2020, and November 4, 2021, respectively, on the fee, road maintenance cess, and rebates on gasoline and diesel. 

People had been griping about the price increases of necessities, which were already burning a hole in their budgets, in the lead-up to the Lok Sabha election. 
A recent announcement on an increase in the value-added tax on gasoline and diesel was released by the Assam Finance (Taxation) Department. The price of gasoline and fuel in the state increased by at least one rupee after the notification took effect on June 5. 

The cost of a litre of regular Indian Oil gasoline in Guwahati was Rs 97.14 on Thursday, June 6. The cost per litre was Rs. 96.13 prior to the VAT hike. As a result, the price was up by Rs. 1.01.

In a same vein, premium petrol now costs Rs 1.20 more per litre. As of right now, a litre of premium petrol costs Rs 103.94 in Guwahati. The price per litre was Rs 102.72 until June 4.

In Guwahati, a litre of diesel was priced at Rs 89.38. This represented a 1 rupee increase above the price before the VAT amount was raised. Previously, a litre cost Rs. 88.38.

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