Opposition, others up in arms against Nagaland’s COVID-19 fuel Cess

Morung Express News 
Dimapur | April 30

Opposition parties and other organisations on Thursday hit out at the Nagaland Government for its decision to impose COVID-19 cess on fuel and demanded its immediate rollback. 

The state government on April 28 issued a notification stating that COVID-19 Cess of Rs 5 per litre will be levied on diesel and Rs 6 per litre on Petrol and other motor spirit, in addition to existing rate of tax and cess.

It came into force with effect from April 28 midnight.

NPF: The main opposition Naga People’s Front (NPF) while questioning the government’s decision stated it would add extra burden to the public and demanded its immediate rollback.

“As understood by a layman, a Cess is a tax on tax, an amount payable on the tax amount.  However, it is painfully understood by the public that any increase in any form of tax is ultimately paid for by the consumers and not by the dealers, who happily recover the taxed amount many times over by raising the retail cost of the product,” a press release from the NPF Press Bureau said. 

The Cess is also insulting when the public is aware that International oil prices have been at an all-time low since 1991 due to the COVID-19 Pandemic, it pointed out.

The NPF further alleged that “the government of the day is trying to recover immediately the little pinch of free ration given to few daily wage earners in the name of lockdown.”

“The Government may seek justification, citing the preparatory cost being incurred by the state due to the pandemic. But the Naga Public must not be taken for a ride yet again by technical explanations and smooth abstract rhetoric. The Preparatory period is over. Sufficient amount of money have poured into the state coffers for this very purpose. If Nagaland state is still not prepared yet, no amount of money will suffice,” the opposition party said. 

It rather advised the government of the day to formulate and implement policies that will relieve the public, even to the extent of subsidizing essential goods to the unemployed, the private-sector employees and the daily wage-earners instead of merely feeding a few of them for a few days, many of whom are dependent on the charity of NGO’s, Churches or some benefactors.

NPCC: The Nagaland Pradesh Congress Committee (NPCC) also demanded the immediate rollback of the COVID-19 cess and said that it is not acceptable in the present circumstances as it will result in price rise across commodities.

 “In the present situation where the people have lost business and jobs, development activities halted, industries closed and farming activities affected for those living in urban areas, imposing of extra tax is nothing but adding salt to injury,” a press release from the NPCC President, K Therie stated.

The Congress, while stating that the State Government has passed a Rs 21,049 Crore budget, added that this money is available with the government.

 In addition, the State Government has received State Disaster Response Management Funds and perhaps Prime Minister CARES fund too along with NEC grants, the NPCC said.

Instead of raising cess to increase prices, it advised the government to restructure the state’s economy to stimulate economic growth and check price rise.

CNCCI:  The Confederation of Nagaland Chamber of Commerce and Industry (CNCCI) in a representation to the Chief Minister urged his office to immediately intervene and rollback or reduce the cess by 75%. 

Stating that Nagaland became the first state in the country to levy such Cess, the CNCCI maintained that the jump in terms of value and percentage is “too high in the recent history of Nagaland.” 

While reiterating its full corporation and support on state’s effort to combat the COVID-19, the CNCCI listed several concerns to justify its demand.

Among others, the CNCCI noted that  prices of many essential commodities across the country has shoot up from the source due to lockdown and the business community and consumers are bearing the brunt. 

The Cess would further push up the price of essential commodity as transportation cost increases and both business community and consumers will be hard hit, it said. 

It further noted that while the business community, Churches, NGOs and the citizens of Nagaland have come forward to assist the state government in its fight against COVID-19, they too are economically hit due to lockdown stretching from March to May. 

“The CNCCI strongly suggest that the benefit of global price slump on oil should be passed on to the consumers and give some relief and respite,” it said. 

The Chamber further said that business community “will require huge support and conducive environment” from the government to bounce back to normalcy at the earliest.

In this connection, CNCCI representing the interest of its confederates spread across 11 districts in Nagaland, called for either a complete or partial rollback of the COVID-19 Cess. 

MCCI:  The The Mokokchung Chamber of Commerce and Industries (MCCI) today stated that   COVID-19 Cess “reveals just how incapacitated  the Government of Nagaland is” on  tackling the pandemic as well as the whole gamut of governance.

A press release from the MCCI stated that it showed “how distantly the government has wandered away from its objective function, that is, welfare of the common people. This egregious abuse of state power is metastasizing.”

The MCCI viewed that this “surreptitious exploitation” of the common people by the state government is highly questionable.
It demanded that the cess be repealed without delay.

With regard to the Chief Secretary’s reasoning that the cess would increase the state’s revenue, the MCCI said that accruing revenue by jeopardizing the whole economy is not wise. 

It further said that “it will indeed be a pleasant surprise if the government of Nagaland would announce a stimulus package to help local businesses tide over the financial stress” caused by the lockdown and stimulating the economy, instead of further choking the fragile economy.”

BAN: The Business Association of Nagas (BAN) today said that the announcement on COVID-19 Cess “came as a shock as the entire world is witnessing a drastic reduction in the international price of crude oil and everyone was expecting a reciprocal reduction in the price of fuel.” 

“It does not require rocket science technology to foresee the negative impact that would have on the economy of the state,” BAN stated in a press release, adding this would lead to a cascading impact on all walks of life, primarily on the economic enterprises of the state. 

Moreover, with the consequent increase in the freight charges as also the agricultural production cost, the livelihoods of the citizens, particularly the rural masses will be drastically affected, the Association added. 

Meanwhile, BAN pointed out that being  responsible business association that has the mandate of all the local businesspersons of the state, BAN is well aware of the financial stress of the state and has approached the Chief Minister for a virtual dialogue with the participation all stakeholders for constructive inputs to salvage the entire state out of this tragedy.

 However, we are yet to receive and acknowledgement of the receipt of our request, it added. 

Left with no other option, BAN is left compelled to appeal to the Chief Minister to roll back the levying of the Cess with immediate effect and said that  it expect the government will act responsibly taking into account the predicament of the business community at large.