Shillong, June 22: The Hynniewtrep Youth Council (HYC) has urged the state government to reconsider its offer of One-Time Settlement (OTS) scheme to petrol pump dealers who defaulted in clearing the outstanding Value-Added Tax (VAT), which has cost the state a loss of around Rs 650 crores in the last 3 years.
In a memorandum addressed to the Chief Minister Conrad K Sangma, Deputy Chief Minister Prestone Tynsong and Taxation Minister James K Sangma, the HYC has also demanded action against the defaulters as per law.
In the letter, HYC general secretary, Roy Kupar Synrem said if the OTS is extended to the petrol pumps in the state, which have defaulted around Rs 650 crores in payment of VAT, and by waiving off the 30% of the taxable amount, it will be a loss of approximately Rs 195 Crores to the State’s revenue collection for the last 3 years.
The HYC leader also questioned the taxation department for coming up with the OTS when VAT is realised under the Meghalaya VAT Act which makes the dealers mandatory to pay the taxes as computed under the relevant provisions of the Act for the specific period.
In fact, the Act provides for payment of simple Interest of 2% per Month by dealers in case he does not make payment in the due date as per the provisions of the Act as well as it provides for Offences and Penalty for non payment or delayed payments of Taxes under the Act.
He further wondered if it is not illegal for the department to come up with this questionable scheme when the law is clear that a defaulter should be penalised as per relevant provisions.
Stating that the consumers at the time of refuelling their vehicles from these petrol pumps have to pay the amount which is inclusive of the taxes as levied by the government, he said this means we are paying an extra amount of about Rs 17-18 per Litre of petrol or about Rs 12-13 per Litre of diesel as VAT depending on the rates fixed by the government.
According to him, this taxable amount is being paid by the consumers and not by the dealers as a contribution towards the state’s development programs.
“Therefore, how is it legal or logical that the hard earned money paid by the general public as contribution to the government in the form of taxes be given away to these dealers who are already earning commission from every litre of fuels that they sell?” he asked.
The HYC has urged the government to reconsider the OTS scheme to petrol pump dealers and direct the department concerned to take necessary steps to realise all outstanding taxes and to take appropriate actions as per the relevant provisions of the law in case of wilful defaulters or delay in making payments.
