Developed By: iNFOTYKE
Liquor bottles to sport MRP
State Cabinet decision
SHILLONG: The Cabinet on Tuesday decided to increase the Value Added Tax by 14.5 percent on all IMFL products even as the State Government has directed all Indian Made Foreign Liquor (IMFL) retail outlets to print the maximum retail price (MRP) of the different brands of liquor and beer to reduce revenue leakages.
“The Taxation department is expecting to receive additional revenue of Rs 25 crore in a fiscal year with this approval to increase the VAT by amending the Meghalaya Value Added Tax Act, 2003,” Chief Minister Mukul Sangma informed after a Cabinet meeting.
He also informed that the State Government will direct all retail outlets selling IMFL to print the maximum retail price (MRP) in the respective bottles of the different brands of liquor and beer so that consumers can pay the exact price and also to leave no room for manipulation of price by the retail IMFL dealers.
“We have taken this step to check the revenue leakage on sale of IMFL,” the Chief Minister said.
At the same time, Sangma informed that the Cabinet has also approved various proposals submitted by the Excise department which will help to mop up additional revenue for the State.
“We have approved the proposal by the Excise department for revision in the rate of export on IMFL. At present there is no IMFL being exported from the State,” the Chief Minister informed.
He said that Government had resorted to similar exercises earlier where the export fee on beer was very high and no export was taking place.
“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,” he added.
Meanwhile, the State Government also approved the proposal to allow the sale of fresh beer in hotels and licensed bars, so that they can generate extra revenue for income.
“The government is benefited through this business exercise,” Sangma said adding “we have structured 10 per cent in case of excise duty and VAT at 10 per cent of the basic cost.”
Taxes Increase on Contract Work
The cabinet also decided to increase the rate of the value added tax (VAT) on goods falling under Schedule 4 by one per cent to 14.5 per cent.
Sangma said it will enable the government mop up additional revenue of approximately Rs 25 crore.
“Relating to work contracts, all developmental programmes implemented by the government, the tax is deducted at the source and since investment have gone up and further investment are in pipeline, we expect that this particular measure will help us mop up more than the projected Rs 25 crore,” he said.