Shillong, March 5: Meghalaya cabinet today approved to levy an additional cess of 10 paise per litre of petrol and diesel sold within the State.

Addressing media after the cabinet meeting, Power Minister James K Sangma said, the cabinet today passed a proposal to amend the Meghalaya (Sales of Petroleum and Petroleum Products including Motor Spirit) Taxation Act, even as it is decided to levy an additional cess of 10 paise per litre of petrol and diesel sold within the State.

Taxation Minister James Sangma said, “The Meghalaya Electric Vehicle Policy 2021 was notified on 5th Feb 2021 and will come into effect from 1st April 2021. It was decided to levy an additional cess of 10 paise per litre of petrol and diesel sold within the State. Presently sales surcharge stands at 2 per cent which was levied on the tax payable on the sale of petrol and diesel under provision section iii(a) of Meghalaya sales of petroleum and petroleum products including the Motor Spirit taxation act. “

“To implement the proposal in the Meghalaya Electric Vehicle Policy 2021 funding of incentives it is proposed to substitute the section iii (a) search out on sale by new provision namely pollution surcharge on the sale by provide for the levy of pollution surcharge on the sale of petrol and diesel empowering the State Government to prescribe the rate of pollution surcharge on sale way of notification effective from 1st of April, 2021,” Sangma said.

He further added that it coincides with the effective date of Meghalaya Electric Vehicle Policy 2021. Thereby the cabinet decided to omit the existing iii (a) revision of rates that inserted in the clause ii of para iii of the Meghalaya taxation amendment act 1998.

“It is also proposed to insert a new section 44 (a) in the Meghalaya (Sales of Petroleum and Petroleum Products including Motor Spirit) Taxation Act to save the action taken and the orders issued in exercising powers conferred under section iii of the act, therefore, this proposal was brought to the cabinet for its approval and after discussion it was passed by the cabinet,” the Minister said.

It is necessary to raise revenue to the State for funding the incentives proposed in the Meghalaya Electric Vehicle Policy, 2021, and for this purpose the Meghalaya (Sales of Petroleum and Petroleum Products including Motor Spirit) Taxation Act is amended.