Meghalaya government reduces VAT on different brands of liquor & Wine

Meghalaya government reduces VAT on different brands of liquor & Wine

A decision had been made by the Meghalaya Cabinet for the reduction of the Value Added Tax (VAT) on different brands of liquor and wines in the state of Meghalaya from 40% to 37%.

On a Cabinet meeting held on Friday, the lifting charges were also reverted to Rs.2 as previously implemented prior to May 2020.

Meghalaya Chief Minister Conrad Sangma on his twitter handle 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.”

Deputy Chief Minister Prestone Tynsone stated that the state government has decided to reduce VAT on different brands of liquor by 2.5%.

Tynsong said that the lifting charge for retailers has also been reduced from 25% of the value of a case to Rs.2 per case. An increase on the charge from Rs.2 per case in May 2020 was seen.

The Meghalaya government’s decision came right after Assam government decided to revise the liquor rates. Earlier Himanta Biswa Sarma Assam’s finance minister announced the tax on liquor to be reduced by 25%.

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.

The new rules will be put into effect by the Meghalaya 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.

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

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