SHILLONG: After cutting down prices of fuel, the Meghalaya government today announced 2.5 per cent slash on value added tax (VAT) on liquor and to do away with the 25 per cent lifting charges.
The state cabinet, chaired by chief minister Conrad K Sangma, today approved the move.
The VAT cut and lifting charges abolition will henceforth bring down price of liquor in Meghalaya.
After the cabinet meeting, deputy chief minister Prestone Tynsong revealed that the cabinet has given its nod to the VAT reduction for Indian made foreign liquor. The VAT has now been brought down to 37.5 per cent from 40 per cent.
He also said the 25 per cent lift charges has been done away with, but the earlier rate of Rs 2 will remain as the lifting charges. The state government had raised the lifting charges to 25 per cent last year to foot for COVID-19 induced expenses.
“We live in a competitive world. You must be aware that Assam has reduced VAT on liquor which has reduced the price drastically. If we don’t reduce, then our turnover will also come down,” Tynsong explained.
Assam had in the recent budget session announced abolishing of COVID-19 cess on fuel and IMFL. The prices of IMFL came down by 25 per cent in the neighbouring state.
Excise minister Kyrmen Shylla said the decision to reduce VAT would not affect the revenue generation of the state because the volume of sales would increase after the price of IMFL are reduced.