People earning less than Rs 1,80,000 annually will not have to pay employment tax in Meghalaya.
This was decided by the State cabinet today while approving to the Meghalaya Professions, Trades, Callings and Employment Tax Act.
Earlier, only individuals with income less than Rs 50,000 were exempted from paying the tax.
Under the amendment, the twelve gross income slabs have been reduced to only four.
Following the decision those whose income fall in the Rs 1,80,000 to Rs 3 lakh slab annually will have to pay Rs 500, between Rs 3 lakh to Rs 5 lakh slab, the tax will be Rs 1000, Rs 5 lakh to Rs 7,50,000 will pay Rs 1500 and those above Rs 7,50,000 will have to pay Rs 2500.
“’The amendment of the Meghalaya Professions, Trades, Callings and Employment Tax Act will make registration of those who are employed or earning through trade and other professions mandatory. For scheduled areas it will be done by the district councils and for non-schedule areas it will be done by the tax department,” Chief Minister Conrad Sangma said after the cabinet meeting.
He also informed that the amendment also decriminalised non-payment of taxes which previously would lead to imprisonment of up to three years.
“’The cabinet has decided to do away with the provision of imprisonment by adding a penalty of four times the amount due. Apart from it an interest of 12 per cent per annum will have to be given by those who pay late,” Sangma said.
The cabinet also approved the National Law University of Meghalaya Ordinance 2022. The university will operate from a temporary campus for the moment.
“As we move forward, we will be going to a permanent campus but we intend to start this at the earliest and roughly 60 students will be taken every year,” said Sangma.
He added that the financial impact will be approximately Rs 6.5 crore annually.
