Chief Minister Conrad Sangma today said that it will be difficult for his government to reduce the Value Added Tax (VAT) on petrol and diesel in the State.
He also said that the cost of petrol and diesel in Meghalaya was the lowest in the country.
Sangma said that last year, the State’s revenue from taxes on petrol and diesel was around Rs 500 crore to Rs 550 crore but after the government bowed to pressure from the public and taxes were reduced this year, the revenue came down to around Rs 400 crore.
“So after we reduced the taxes last time because of the pressure from the public, the State government has lost about Rs 100 crore in revenue,” Sangma said.
Stating that it was not a simple decision for the government to take right now as far as cutting VAT on fuel, Sangma said that State tax on petrol and diesel cost in the State is one of the lowest in the country.
According to him, there are states charging up to 36 per cent VAT on the two fuels.
Sangma also said that the State government has to keep in mind the large number of expenditures it has incurred.
“All these factors are making it quite difficult for us to finds a way forward but we are still examining and seeing how we could move forward,” Sangma added.
The chief minister also said that the State government has also decided to move the government of India and request it to reduce the central excise duty on petrol and diesel keeping in mind the high rates right now.
“So on that angle also we are exploring the possibility of approaching the government of India,” Sangma said.
