Shillong Nov 14: The Meghalaya cabinet has approved amendment of the Meghalaya Excise Rules which will help in raising revenue from excise upto Rs 250 crore.
“We have amended the rules and made it mandatory for the bonds now to give prepaid the excise duty which means the bonds will now pay the excise duty while they purchase from the companies. This is being done to ensure that there is minimum leakage in the system and this is going to be effective very soon as it takes times and process to ensure that everybody is in line,†he said.
At present the state has a revenue of about 227 crore from excise, and the target for this year has been Rs 250 crore.
“We expect that in the next five months (upto March) we should be able to form this Rs 250 crore and able to see another 15 to 16 per cent additional income by this year. I am hopeful that by next financial year when the entire things are streamlined, we will see more increase in revenue. In terms of rupees, atleast 40 to 50 crores additional revenue will are looking at,†chief minister, Conrad K Sangma said.
The cabinet also included fees which will be given by retail shops while they take from the bond.
“We have included a mechanism called ‘retail lifting fee’ which is two rupees per case but it is meant to have on records challans while the retail shops will buy from the bonds. This is about two rupees per case, but it should lead to approximately 60-70 lakh of additional revenue,†he said.
It was also decided that to put fees on liquor brought in by military and paramilitary units to the state. Earlier they used to lift from Narengi in Assam even now, but the excise department did not charge any fee from them. It has now been decided that 40 per cent ad valorem will be levied as well as import fees which is 40 per cent of the fees that others pay will be also paid by them. It is still concessional but it will lead to some revenue for the state about one crore and a half,†he added.
Meghalaya’s own revenue has been estimated at Rs 2,200 crore. Out of that, only 10 to 15 per cent from excise which is about Rs 227 crore, and upto Rs 250 crore we expect. “We also have revenue from transport, royalty, GST, VAT on petroleum products, and others,†he informed.
