Shillong: The Meghalaya Cabinet on Thursday announced a tax hike on diesel to Rs 50 paisa in the initial phase, citing the need to bolster the state’s revenue due to the significant price difference between diesel in Meghalaya and Assam.
At present, there is a considerable gap of Rs 6.23 between diesel prices in Assam’s Guwahati and Khanapara in Meghalaya.
Chief Minister Conrad K Sangma stated that the government aims to maintain a favourable price difference between the Guwahati market and the Ri Bhoi (Khanapara) market, ensuring Meghalaya’s advantage in rates.
He emphasised that his government intends to keep the state’s rates below the national average to maintain overall stability. “Meghalaya as of now is maintaining one of the lowest rate of petrol and diesel in the country,” said Sangma.
The Cabinet expects an annual revenue increase of 5-6 crores from this decision.
Addressing concerns about the impact on transportation of essential commodities, Sangma acknowledged that every decision has consequences, but he reassured the public that the government was transparent about its actions.
“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,” added Sangma.
In another development, the Cabinet has streamlined the VAT collection process for excise, petrol, and diesel. Although there will be no change in rates affecting consumers, businesses are required to deposit the VAT collected within 30 days, compared to the previous three-month period. The current collection from petrol and diesel stands at approximately Rs 350 crores.
Furthermore, the Cabinet approved the acquisition of 50 acres of land near Nongmahir Lake in Ri-Bhoi for tourism infrastructure development. The government plans to introduce water sports activities, allocating an estimated budget of Rs 10 crore for the project.
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Additionally, the Cabinet passed an ordinance to repeal the Rajitlal University Act 2011, as the university’s progress was deemed insufficient.
Regarding transportation, the Cabinet finalised the rules for the Meghalaya Taxi Aggregator Operational Rules 2020. Aggregators will be required to pay a basic license fee of Rs 700 per year per vehicle and a permit fee of Rs 200 for operating from a specific location such as a city, district, or region. For operations throughout the state, the license fee will be Rs 1,300, and the permit fee will remain Rs 200. Passenger rates have also been established, with a proposed fare of Rs 10 for the first kilometre Rs 5 for subsequent kilometres, and a holding charge of Rs 4 for every five minutes.
Sangma emphasised the importance of compliance with App regulations, GPS tracking, proper registration, and driver identification for taxi aggregators.
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