February 11, 2021 9:26:33 pm
Manipur Deputy Chief Minister (in-charge Finance) Yumnam Joykumar on Thursday assured the Assembly that the state will consider suggestions to review Value Added Tax (VAT) on petroleum products.
Replying to a query raised by Congress MLA Surjakumar Okram, the deputy CM, who also doubles up as the finance minister, said that the existing VAT levied on petroleum products in the state is comparatively similar to other states in the Northeast.
Revisions in VAT on petroleum products such as petrol and diesel have been made thrice since 2017 — October 4, 2018; October 22, 2019 and May 6, 2020. A 14-day public notice was issued by the government for the increments/revisions on October 22, 2019, the deputy CM said, adding the remaining two revisions on October 4, 2018 and May 6, 2020 weren’t notified.
Joykumar said as per the increments/revision on October 4, 2018, the VAT for petrol was reduced from 25% to 21.2% and for diesel, it was cut from 14.5% to 10.6%. He said the move wasn’t notified as the government had decided to immediately transfer the benefit of tax decrease on these products to consumers.
Explaining the rationale behind not issuing a public notice for the revision on May 6, 2020, Joykumar said it was because of the urgent need for additional resources to meet the high expenses incurred for effective management of the Covid-19 pandemic.
He said during the unprecedented lockdown, the state recorded a sharp decline in the collection of GST and VAT. However, it was also a time when there was an urgent requirement for adequate funds to fight the pandemic, the deputy CM added.
📣 The Indian Express is now on Telegram. Click here to join our channel (@indianexpress) and stay updated with the latest headlines