Meghalaya Cabinet reduces VAT on liquor

Shillong, Feb 26: The Meghalaya Cabinet on Friday decided to reduce the VAT on liquor.

Deputy Chief Minister, Prestone Tynsong informed that the VAT on liquor has been reduced from 40 percent to 37.5 percent.

“We will be incurring a loss of Rs. 80 crore to Rs. 85 crore by reducing the VAT on liquor,” Tynsong informed.

The Deputy Chief Minister also said that the lifting charges have also been reverted to Rs.2 as previously implemented prior to May 2020.

When asked why the government decided to reduce the VAT on liquor despite knowing that there would be loss in revenue, Tynsong said that this has been done so because the Assam government recently removed the cess on liquor.

Tynsong informed that with this the difference in rate of alcohol in the neighbouring state is lesser by Rs. 10 to Rs. 50.

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