SHILLONG | Sept 05, 2019:
With an intention to arrest the net revenue loss, the Meghalaya Cabinet today approved the proposal to withdraw the rebate of 2 rupees and 50 paisa per litre on tax payable of petrol and diesel.
“We had decided to withdraw the rebate to arrest the net loss of revenue,” Home Minister, James PK Sangma told reporters after the Cabinet meeting.
According to Sangma, the Centre in October 05 2018 had announced the deduction in the rate of the excise duty on petrol and diesel by 2 rupees and 50 paisa.
“In compliance with the request of the Centre, we had done the same thing to further bring down the retail price of petrol and diesel,” he said adding that the State Government had incurred huge lost in the revenue in view of this decision.
Home Minister informed that the net loss of revenue was Rs 61. 60 crore incurred by the State till March 31, 2019 due to the rebate on the tax payable on petrol and diesel.
Informing that the State suffered a revenue loss of Rs 47.55 crore on the tax payable from diesel, Sangma said that the State Government incurred a loss of another Rs 14.5 crore on the tax payable on petrol.
It may be mentioned the State Government on October last year had reduced the prices of petrol and diesel by Rs 2.50 paisa per litre.
Deputy Chief Minister, Prestone Tynsong had stated said that the Government would be incurring a loss of around Rs 15 crore annually in view of this bold decision adding that the loss to be incurred monthly would be around Rs 1 crore plus .
The State Government had taken the decision in view of the escalating of the prices of the petroleum products during this same period last year.