Meghalaya govt to reimburse 95 percent of IT returns paid by all India service officers

Meghalaya govt to reimburse 95 percent of IT returns paid by all India service officers

Shillong, Feb 26: The state cabinet on Friday decided to reimburse the income tax payable by all India service cadres. Informing reporters after the cabinet meeting, deputy chief minister, Prestone Tynsong informed that the state government will reimburse upto 95 percent of the income tax paid by the all India service officers.

Tynsong informed that the state government will incur an expenditure of Rs. 1.45 crore annually due to this measure.

He said that the Cabinet also decided that those tribal employees working in state government departments outside the state like in Meghalaya Houses their income tax payments would also be reimbursed.

It may be mentioned that tribals working outside the state have to pay their income tax.

VAT on liquor reduced

Meanwhile, the state cabinet has also decided to reduce the Value Added Tax on liquor. The Deputy Chief Minister informed that the VAT has been reduced from 40 percent to 37.5 percent.

Also, the lifting charges have been reverted to Rs.2 as previously implemented prior to May 2020.

Tynsong said that with the reduction in VAT on liquor the government would be losing revenue to the tune of Rs. 80 crores to 85 crores annually.

But according to him, the state government had to reduce the VAT on liquor since neighbouring Assam had reduced taxes on alcohol drastically.