SHILLONG, JAN 20: To mob up additional revenue the state cabinet on Tuesday decided to increase the Value Added Tax (VAT) to 14.5 per cent hoping to generate an additional revenue of Rs 25 crores per annum even as it approved revision of the rate of export of IMFL items.
Meghalaya chief minister Mukul Sangma told reporters after the cabinet meeting, “We have approved the proposal to increase the value added tax as per MVAT Act 2003 in respect of goods falling under Schedule 4 from 13.5 per cent to 14.5 per cent. This will enable the taxation department to mob up additional revenue of approximately Rs 25 crores per annum.”
Sangma, however, informed that the additional revenue projected to be mopped up is based on the calculation of the tax collected during the preceding year.
Stating the government expects to generate more than the projected amount, Sangma said given the kind of investment taking place in the state as the government is also increasing the investment for various other developmental programmes which is covered under this schedule 4, which includes the work contracts, the revenue to be collected might go up than the projected amount.
Cabinet has approved several proposals submitted by the state excise department to generate additional revenue for the state. “We have approved the proposal by the excise department for revision in the rate of export on IMFL,” Sangma informed. According to him at present there is no IMFL being exported from the state.
Sangma said the reason why no IMFL is being exported from the state is because the rate fixed is high so the excise department cannot compete. He informed that the department proposed to bring down to Rs 5 per case instead of Rs 100 so that export can start taking place and some revenue can be generated as it is zero now.
Sangma also informed that the exercise department has also resorted to similar exercise earlier where the export fee on beer was very high and as a result no export was taking place. He said, “But now the export on beer has taken place and through this exercise the department has been able to generate total revenue of Rs 7.6 lakhs through export in the current year till date.”
Stating a similar situation with the extra neutral alcohol where no export fee is being made till date, Sangma said, “We have decided to impose both for import and export fees. The import fee will be at the rate of Rs 10 per bulb liter and export fee is Rs 5 per bulb liter, so that they can compete with the rest of the manufacturers.”
The state cabinet also approved the proposal to allow the sale of fresh beer in hotel and licensed bars, so that they can generate extra revenue for income. He said,“The government is benefited through this business exercise and accordingly we have structured 10 per cent in case of excise duty and VAT at 10 per cent of the basic cost. – By Our Reporter
+ There are no comments
Add yours