Meghalaya Government reduces VAT on alcohol

SHILLONG

The Meghalaya Cabinet on February 26 decided to reduce the Value-added tax (VAT) on liquor from 40 per cent to 37.5 per cent to avoid a reduction in the turnover.

Speaking to newsmen, Deputy Chief Minister Prestone Tynsong informed that the Excise Registration Taxation Stamps department has reduced the VAT on liquor, adding that the lifting charges have also been reverted to ₹ 2, as previously implemented before May 2020.

“The government will lose annual revenue to the tune of ₹ 80 to ₹ 85 crore,” Deputy Chief Minister informed.

He further informed that the Cabinet has taken this decision since Assam had drastically reduced the tax on alcohol.

Meanwhile, the Cabinet also approved the proposal to reimburse the Income Tax paid by the All-India service officers who are serving in Meghalaya.

Informing that they have decided to provide a special incentive to the officers coming to Meghalaya from different parts of the country, Tynsong said, the total expenditure to be incurred by the State Government annually for reimbursing the Income Tax of All India officers would be around ₹ 1.45 crore.

(Edited by Christopher Gatphoh)

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