State

Finance dept clarifies on fuel tax hike

Finance dept clarifies on fuel tax hike
DIMAPUR, NOV 17 (NPN) | Publish Date: 11/17/2020 12:50:28 PM IST

Says IOC fixing the base value unfairly

Following the controversy generated over imposition of new tax on petroleum products in the State, the Finance department has clarified that Nagaland was not the only State to have raised the fuel prices during COVID-19 pandemic and the lockdown. 

Mentioning that fuel prices had been regularly adjusted based on the prices in neighbouring States even in the past, the department in a statement pointed out that the existing prices of petroleum products in other North Eastern States were still higher than Nagaland.

Asserting that the State government had fixed very reasonable rates of tax on petroleum products compared to other States, the department said there was no reason to term it “oppressive”. (See table-1)

It also clarified that despite the substantially lower rates of taxes of the State government, 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 Manipur. 

The reason for such difference was being taken up with Indian Oil Corporation (IOC) Ltd for clarification since it was decided exclusively by the oil marketing company, the statement added. 

According to the Finance department, prices of petrol and diesel in Nagaland are cheaper than in Assam and Meghalaya while these were very close to Manipur. 

Claiming that the main reason for high prices of petrol and diesel in the State was the high base value of petrol and diesel in the State, which was higher than in Assam and Manipur, the department said the base value was decided exclusively by the oil company.

The department further alleged that the oil company  (IOCL) was fixing the base value unfairly in respect of Nagaland, which was directly resulting in higher prices of petrol and diesel in the State even though the rate of tax was considerably lower than Assam and Manipur. (See table-2)

The State government has therefore asked IOC Ltd to explain the reasons for the higher base value of petrol and diesel, compared to neighbouring Manipur.

 

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