by NEWSNER , 2021-02-27 11:25:13
Liquor rates in Meghalaya are ready to travel down because the government has reduced VAT (VAT) on various brands besides removing lifting charges.
Meghalaya cabinet on February 26 reduced VAT on various brands of liquor by bringing it down from 40 per cent to 37.5 per cent also as doing away with the 25 per cent lifting charges.
Excise minister Kyrmen Shylla said that the choice to scale back VAT won't affect the revenue generation, because the number of sales will increase after the worth of liquor has come down.
He said that the revenue from excise during 2019-2020 was Rs 276 crore and Rs 269 crore during 2020-2021 till January.
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“We hope the revenue is going to be more during this current fiscal year, than last year because we've two months more – February and March,” Shylla said.
On the opposite hand, deputy chief minister Prestone Tynsong said that the state is going to be losing annual revenue to the tune of Rs 80-85 crores.
When asked why did the Meghalaya government reduced VAT on liquor if the state is losing revenue, the deputy chief minister informed that this was done since Assam drastically reduced tax on alcohol.
“We live in a competitive world, be it between one government and another. within the last budget session of Assam, they reduced it drastically were ultimately the worth of liquor has come down and therefore the difference within the cost isn't but Rs 10 to Rs 50, so we are sure to reduce it,” he said.
Moreover, Tynsong said if the govt doesn't reduce then the turnover will drastically come down.
“As I told you we are within the field of competition ultimately we are sure to reduce tax on liquor,” he added.
On Lincoln's Birthday, the Assam government decided to drop 25 per cent cess on alcohol.