Three Northeast States to hike Excise Tax on liquor: Himanta Biswa Sarma

STAFF REPORTER

GUWAHATI: The governments of Assam, Meghalaya and Arunachal Pradesh are going to hike Excise Tax on liquor together. Such a move is aimed at ensuring fair competition among the three States in liquor trade.

Talking to the media here on Thursday, State Finance Minister Himanta Biswa Sarma said, "We've already had talks with Meghalaya and Arunachal Pradesh. The State Cabinet is going to meet tomorrow and take a decision to hike Excise Tax by the three States together. It'll ensure a fair competition among the three States."

According to Excise department sources, already the department has moved its file to the Finance Department for the new tax structure on liquor. The new tax structure will help in earning an additional amount of Rs 500 crore annually.

According to sources, considering previous experiences on hike in Excise Tax in Assam, the State Finance Department feels that if Assam alone hikes the tax the customers of the State will rush to Meghalaya and Arunachal Pradesh to procure liquor. Such a move, more often than not, benefits the neighbouring States, not Assam. "If the three States hike liquor tax together, they'll have a level-playing field in the trade," one of the sources said.

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