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Meghalaya Cabinet Approves Tax Hike on Petrol and Diesel, CM Conrad K Sangma Announces
In a bid to address the price disparity between Meghalaya and Assam, the Meghalaya Cabinet, under the leadership of Chief Minister Conrad K Sangma, has approved the enhancement of tax rates on petrol and diesel. The decision comes as the state looks to bridge the gap in fuel prices and bolster its revenue.
Fuel Price Disparity:
Meghalaya Chief Minister Conrad K Sangma took to Twitter to announce the cabinet's approval of the tax rate increase on petrol and diesel. He highlighted the significant price difference between Meghalaya and Assam, citing the fuel prices at ₹90.33 per liter in Guwahati and ₹84.10 per liter in Khanapara, showing a substantial gap of ₹6.23 between the two neighboring regions.
Revenue Concerns:
CM Sangma justified the decision by emphasizing the state's need to boost revenue amid the price disparity with Assam. The 50 paisa hike in tax rates aims to bring the fuel prices in Meghalaya closer to those in Assam and generate additional funds for the state's development and welfare initiatives.
Balancing Fuel Prices:
The difference in fuel prices between neighboring states can lead to fuel smuggling and financial losses for the state government. With the increased tax rates, Meghalaya aims to balance fuel prices within its borders while also discouraging cross-border fuel purchases, which could hamper the state's revenue generation.
Public Reaction and Implications:
The decision to raise the tax rates has garnered mixed reactions from the public. While some may view it as a necessary step to address the price disparity, others might express concerns over the potential impact on consumers and businesses. The state government will closely monitor the implications of the tax hike on fuel consumption patterns and revenue collection.
The approval of the tax rate increase on petrol and diesel in Meghalaya reflects the state's efforts to address the fuel price disparity with Assam and strengthen its revenue base. As the new tax rates come into effect, the government will closely assess the impact on fuel prices, consumer behavior, and overall economic development in the state.