SHILLONG: Chief Minister Conrad K. Sangma has announced that the Meghalaya government will thoroughly examine the rising prices of petrol and diesel in the state.
However, he clarified that the government will not take a hasty decision to reduce the Value Added Tax (VAT) collected by the state, as such a move would adversely affect the implementation of various development projects across Meghalaya.
Speaking on the issue, the Chief Minister explained that the surge in fuel prices is primarily driven by the ongoing global war, a situation that has impacted the entire world and affected every single individual.
He emphasized that this crisis is not unique to Meghalaya or India but is a global phenomenon.
He further pointed out that while the situation has significantly strained many nations, forcing some to implement strict rationing or drastically cut down on fuel consumption, India has not yet reached that critical stage.
Expressing hope that the country would avoid such extreme measures, he nonetheless stressed the need for conservation, caution, and financial prudence.
Echoing the sentiments of the Prime Minister, the Chief Minister stated that this is not a time to panic but rather a period to remain vigilant and focus on actionable solutions to counter an international crisis that remains beyond immediate control.
He urged citizens to personally prepare themselves to face these challenging times, calling for unity and solidarity among all residents to navigate the global hardship together.
Sangma also highlighted that fuel prices in Meghalaya are currently significantly lower than the national average. Despite the constraints, the government will make every effort to ensure a steady supply of fuel wherever possible without causing a shortage.
Furthermore, the administration will maintain strict vigilance to prevent any hoarding or black-marketing of fuel, which could artificially drive prices higher.
Addressing the demand for a reduction in VAT, the Chief Minister noted that while larger states might have the flexibility to slash state taxes, Meghalaya’s VAT rates are already lower compared to other states.
He cautioned that any further reduction would severely impact the state’s revenue and financial inflows, especially at a time when the government faces heavy expenditures to meet public needs.
He concluded by stating that smaller states like Meghalaya inherently generate less tax revenue, making such fiscal decisions incredibly difficult.
Therefore, the government must carefully assess the situation to prevent any detrimental impact on the state exchequer and the essential funds required to run the state administration before taking any final call.
