The Meghalaya budget 2010-11, presented in the Assembly today, proposed to hike the VAT rate on all items, barring wheat and rice, from four per cent to five per cent. Presenting the budget, Finance Minister Mukul Sangma proposed to raise the royalty rate on coal to realise Rs.42 crore. The tax on luxuries will be amended to rationalise the room tariffs, he added.
Other fiscal measures include the proposal for revision of rates of licence fees and excise levies, increase in the rates of tax under the Meghalaya Passengers and Goods Taxation Act and rationalisation of tax on works contracts. Sangma also proposed introduction of holograms in the sale of liquor in the state, to check leakage or revenue.
“This step, along with other measures, is expected to generate additional revenue of Rs 10 crore annually.