Meghalaya Govt Reduces VAT on Liquor & Wines

SHILLONG: Meghalaya Cabinet has decided to reduce the Value Added Tax (VAT) on different brands of liquor and wines in Meghalaya from 40% to 37.5%.

The lifting charges have also been reverted to Rs.2 as previously implemented prior to May 2020.

The decision was taken in a Cabinet meeting held on Friday.

In a tweet, Meghalaya chief minister Conrad Sangma wrote, "Cabinet has decided to reduce the VAT on different brands of liquor and wines in #Meghalaya from 40% to 37.5%. The lifting charges have also been reverted to Rs.2 as previously implemented prior to May 2020."

Meanwhile, Deputy Chief Minister Prestone Tynsong said that the state government has decided to reduce VAT on different brands of liquor by 2.5%.

The lifting charge for retailers has also been reduced from 25% of the value of a case to Rs. 2 per case, Tynsong said. The charge was increased from Rs. 2 per case in May 2020.

It is to be mentioned that the state government of Meghalaya's decision came after the Assam government decided to revise the liquor rates.

Earlier Assam finance minister Himanta Biswa Sarma has announced that the tax on liquor will be slashed by 25 per cent.

Assam finance minister Himanta Biswa Sarma made the announcement while presenting the vote on account Budget on Friday, on the second day of the three-day State Assembly session.

The vote on account from April-July 2021 comes ahead of the upcoming Assam Assembly Elections. Speaking at the session, Himanta Biswa Sarma announced that the government has decided to remove the 25 per cent additional cess on alcohol, which was levied to meet healthcare expenses during the COVID-19 induced pandemic. The change in the cess tax on the price of alcohol will be put into effect by the state government from February 13.

In May 2020, Assam increased excise duty on Indian made foreign liquor (IMFL) by 25% and in April the government increased the price of petrol from Rs 71.61 to Rs 77.46 per litre, and diesel from Rs 65.07 to Rs 70.50 per litre.

The minister also announced that Petrol and diesel will cost Rs 5 less after the COVID-19 cess was removed.

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