Meghalaya to pay 95 percent income tax for all India service officers

The Meghalaya government on Friday decided to provide incentives to all India service officers serving in the state government who have to pay income tax.

Employees of the state government who are working outside the state like in Meghalaya houses are also entitled to the incentive because they are subjected to payment of income tax, although they are tribals from the state.

Addressing media persons after the cabinet meeting on Friday, Deputy Chief Minister Prestone Tynsong said Meghalaya is the first state in the history of the country to provide such a special package for all India service officers serving in the state.

“The state government will reimburse 95 percent of the total dues payable by these officers (coming from different parts of the country to work in Meghalaya) to the Income tax department,” Tynsong said.

According to him, the government will require to spend not less than Rs 1.45 crore annually for providing this special package to the officers. He said as per the Income Tax Act, non-tribal officers are subjected to pay income tax annually throughout India.

The Meghalaya government has decided to reduce the value-added tax (VAT) on liquor by 2.5 percent as well as do away with the 25 per cent lifting charges. The price of liquor in Meghalaya will be cheaper from now on after the reduced VAT and removal of the 25 per cent lifting charges. This was approved by the state cabinet in a meeting on Friday.

It may be mentioned that the state’s major revenue comes from liquor. The government had recently reduced the VAT on fuel prices. Reduction for petrol was reduced to 20% or 15 rupees per litre.

In 2020, the government had informed that the state had collected over Rs 6 crore as revenue from liquor.