SHILLONG: The State Cabinet on Tuesday decided to lower the taxes on cigarettes, cigars and bidis to 25 per cent from 27 per cent.
Chief Minister Mukul Sangma said the decision was taken considering the reduction in revenue following the increase in tax on tobacco items. The reduced tax is equal to that levied in Mizoram and Tripura.
“We also wanted to rationalise the tax at the same rate which is prevailing in Mizoram and Tripura,” Sangma told reporters.
Giving figures, Sangma said in 2014-15, the Government had realised a tax revenue of Rs 33.44 crore with 20 per cent tax on these items and it went up to Rs 36.09 crore with 27 per cent tax in 2015-16. However, revenue came down to Rs 31.48 crore in 2016-17.
Meanwhile, Sangma said chances of tax evasion cannot be ruled out.
Many unauthorised brands of cigarettes and bidis are smuggled into Meghalaya and the Government has issued necessary directives to crack down on such smuggling.
Sangma also cautioned people against smoking. “Smoking has ramifications on the health of the people. The Government has to spend on healthcare when people fall sick from smoking,” he said.
