Meghalaya cabinet regularises decision to reduce tax rate on petrol, diesel

Shillong (Meghalaya) [India], February 17 (ANI): Meghalaya Chief Minister Conrad Sangma said on Wednesday that state cabinet has regularised the decisions of the government to revise the tax rates for petrol and diesel taken over the past few days which have led to the reduction in fuel prices by nearly Rs 7 per litre.
Meghalaya government had slashed the retail prices of both petrol and diesel by Rs 2 per litre last week.
Sangma said at a press conference after a cabinet meeting that the state government on Tuesday again lowered value-added tax (VAT) on the two petroleum products resulting in a reduction in the prices by over Rs 5 per litre.
"Earlier we had done it for Rs 2 and yesterday we again revised the new tax rates for petrol and diesel. Cabinet today regularized the reduction of taxes for petrol and diesel and approved new rates of tax for the same," he said.
He also said the state cabinet approved the extension of time for stamp duty payment on the mining lease.
"Leaseholders will now pay 100 per cent stamp duty against 50 per cent. It was interpreted that mining lease falls under the instrument of conveyance, hence SC, ST required to pay only 50 per cent, but that's not the case," he said.
"The court directed that mining lease stamp duty not under the instrument of conveyance. Hence mining lease holders to pay 100 per cent stamp duty. Leaseholders to pay remaining 50 per cent, with half of it to be paid immediately and other half by March 31, 2021," he added.
The cabinet also decided to amend the Meghalaya Fiscal Responsibility Budget Management (FRBM) Act, 2006 which will enable the government to borrow up to 5 per cent of the state's Gross Domestic Product (GDP), Sangma said.
"With the central government allowing states to borrow an additional two per cent, the Act needed to be amended to allow the state government to take 5 per cent of the overall GDP as debt which initially was at 3 per cent," he added.
The state Cabinet also approved the appointment of 45 junior engineers under the Public Health Engineering (PHE) department bypassing the Meghalaya Public Service Commission (MPSC), he said. (ANI)