SHILLONG, July 20: The state Cabinet has decided to enhance the rate of tax on diesel by 50 paise per litre.
Chief Minister Conrad K. Sangma said the difference in the price of diesel between Meghalaya and Assam is quite high – Rs 90.33 in Guwahati and Rs 84.10 in Khanapara. The difference is of Rs 6.23.
“Hence, considering the revenue of the state, we have decided to increase the rate by 50 paisa,” the CM said.
He also said the government will always ensure that the state does not cross the national average so that overall rate is maintained.
“Meghalaya, as of now, is maintaining one of the lowest rates of petrol and diesel in the country,” Sangma said, adding the government expects an increase of Rs five to six crore in the revenue annually from this decision.
Asked if this will impact the prices of essential commodities, Sangma said every decision will affect something or the other and there is nothing to hide. “We saw that there is clearly a huge scope of revenue for us. Hence, we are increasing it by 50 paisa right now, and we’ll see accordingly as we go along,” the CM said.
VAT collection to be streamlined
In another decision, the Cabinet decided to streamline the overall collection of VAT in excise as well as petrol and diesel.
Sangma said since there will not be any change in the rates, the consumers will not be impacted.
With this move, the government wants to ensure that the concerned business houses and petrol pumps pay the VAT collected within every 30 days and not in 90 days as done earlier.
“So, within a month’s time, they have to reconcile. Whatever VAT has been collected, they should deposit it to the government exchequer,” he said.
The government roughly adds around Rs 350 crore annually from VAT in petrol and diesel.
Nod to taxi aggregator operation rules
The Cabinet also approved the Meghalaya Taxi Aggregator Operation Rules which will put in place a basic license fee for aggregators (individuals/companies).
Sangma said for bike taxis, a license fee of Rs 700 per vehicle per year will be charged and a permit fee of Rs 200 if they operate from a specific location, i.e. city/district/region and if they are to operate in the entire state, the license and permit fees will be Rs 1,300 and Rs 200 respectively.
The Cabinet finalised the rates in which passengers can be charged for two-wheelers or bike taxis.
The proposed fare is Rs 10 for the first kilometer and Rs 5 for subsequent kilometers and a holding charge of Rs 4 for every 5 minutes for the bike taxis.
“These rules also come with basic criteria that must be followed like availability of GPS, proper registration, identification of driver and to ensure safety of passengers,” Sangma said.
Tourism infrastructure in Ri-Bhoi
In addition, the Cabinet approved the procurement of land measuring 50 acres for tourism infrastructure near Nongmahir Lake in Ri-Bhoi. The land is being acquired to increase the overall land bank with the state government so that tourism projects can take place.
The government is planning water sports activities and roughly Rs 10 crore is expected for this project.
Repeal of Act
The Cabinet has decided to pass an ordinance to repeal the RAJITLAL University Act, 2011 as the government did not notice any significant move from the varsity. The Act was passed in the Assembly in 2011 but for multiple reasons, it the Governor’s assent was delayed.
The Governor’s nod finally came In February, 2020 but no significant steps were taken by the university.
The Private University Commission, which regulates such private institutions, had also written to the said university to follow up but no satisfactory reply came from its end. Following due process, the proposal was brought to the Cabinet to pass an ordinance to repeal the Act.