On Tuesday, the Meghalaya State Cabinet approved an amendment to the Meghalaya Excise Amendment Rules, 2021. The amendment involves a reclassification of brands, a move aimed at generating an additional Rs 50 crore in revenue for the state's excise department.
Cabinet Minister Marcuise N Marak explained that the number of brand categories would be reduced from six to five to improve tax collection. The excise duty is expected to rise by 15 percent, leading to an Rs 50 crore increase in yearly revenue. Current excise collection stands at approximately Rs 350 crore per year.
Sanjay Goyal, Commissioner & Secretary in-charge of the department, stated that the department's revenue collection over the past five years was approximately Rs 1,200 crore.
The reclassification, he said, would not significantly affect the Maximum Retail Price (MRP), with prices expected to rise by only 9-10 percent. This adjustment is projected to generate around 5% additional revenue for the department without significantly impacting the MRP.
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