Tax syndrome

 Scores of organisations have raised the banner against the ruling PDA in Nagaland for imposition of additional COVID-19 cess of Rs.5 for a litre of diesel and Rs.6 for a litre of petrol including petroleum products. The organisations that included CSOs and students have demanded a rollback on the COVID-19 cess in view of the escalation of prices due to higher transport charges that has adversely affected the economically weaker sections. Various student tribal units of Dimapur have served a four-day ultimatum on the government with effect from September 19, to rollback the cess. It may be recalled that the COVID-19 cess became effective on midnight of April 28,2020. According to the stat finance department, the COVID-19 cess will continue to be in effect till the central government announces the lifting of the COVID-19 pandemic. The government of India has not lifted the lockdown but has greatly relaxed several restrictions. In the light of the rider on withdrawing the cess, it may be assumed that it would continue so long as the national lockdown remains. The COVID-19 cess has put a huge burden on transporters who have in turn, have passed it on to the public. There has been no let up from various business associations in expressing their total opposition to the COVID-19 cess. The associations have maintained an unequivocal demand for its rollback. So far there has been no further reaction from the government. Left to themselves, people in general feel that having to pay higher price of Rs. 5 litre on diesel and Rs.6 on petrol was unreasonable and unjust and since they are all undergoing severe hardship during the lockdown. Therefore, they say that any extra burden on them was uncalled for and unwarranted. It may be also recalled that the state government had informed that the state collected Rs 0.24 crore as COVID-19 cess in April and Rs 3.36 crore in May. The chief minister who also holds the finance portfolio informed the house that Rs 6.89 crore was collected till July 2020 through COVID cess, adding that the admitted cess for the month of July 2020 shall be payable by August 21, 2020. It was also informed that the total collection in 2020-21 was estimated at Rs 37.25 crore. The issue was taken to the high court through a PIL filed by an advocate. In response, on May 20, the Kohima Bench of Gauhati High Court issued a notice to the Government of Nagaland over imposition of COVID-19 cess on petroleum, diesel and other motor spirit items and frequent hike of petroleum products. The petition submitted that during the lockdown period, normal economic activities have slumped and affecting mainly the poorer sections of society especially daily wage earners. The upward spiral of the prices of commodities have added more misery on the poorer section who find it difficult to sustain their economic needs. The petitioner viewed that when the poorer sections were undergoing severe economic hardship due to the lockdown, the state government should have provided them with some welfare measures but instead, has imposed the COVID-19 cess which has doubled their woes. It would have been in the fitness of things, if the protests were also directed at myriad of unauthorised and illegal tax collectors, whose imposition has been the major cause for abnormal increase in prices of all commodities.