Nagaland reduces taxes on petrol and diesel1 min read . Updated: 23 Feb 2021, 08:17 AM IST
- The rate of tax on petrol and other motor spirits has been reduced from 29.80% to 25% per litre or from ₹18.26 to ₹16.04 per litre
- Earlier in the day, West Bengal, Rajasthan, Assam, and Meghalaya also announced relaxation in fuel prices
Amid spiking rates of fuel across the country, the Nagaland government on Monday cut down taxes on petrol, diesel and other motor spirits.
"In exercise of powers conferred by sub-section 3A of the Nagaland (Sale of Petroleum and Petroleum Products including Motor Spirit and Lubricants) Taxation Act, 1967 (as amended), the Governor of Nagaland is pleased to notify that the rate of tax under entry serial number 3 & 4 of Schedule II of the Act shall stand amended. This notification shall come into force with effect from midnight of 22nd February 2021," read a notification issued by Sentiyanger Imchen, the additional chief secretary of the state finance department.
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After the amendment, the rate of tax on petrol and other motor spirits has been reduced from 29.80% to 25% per litre or from ₹18.26 to ₹16.04 per litre (whichever is higher).
The tax rate for diesel has been reduced from ₹11.08 to ₹10.51 per litre or 17.50% to 16.50% per litre (whichever is higher).
In effect, the petrol price has been reduced by ₹2.22 per litre and diesel by 57 paise per litre.
Earlier in the day, West Bengal, Rajasthan, Assam, and Meghalaya also announced relaxation in fuel prices.
VAT on fuel was reduced in Rajasthan from 38% to 36% after petrol prices breached ₹100-mark in Ganganagar and Hanumangarh districts.
In poll-bound West Bengal, a reduction of tax by Re 1 per litre on petrol and diesel in the state was announced on Monday. Similarly in Assam, the government reduced tax on petrol and diesel price, reducing fuel rates by ₹5 per litre.
Meghalaya government introduced the biggest relief on petrol and diesel price of ₹7.4 and ₹7.1 per litre respectively. Meghalaya reduced VAT on fuel to 20% from 31.62%.