The HYC opposed the proposed “OTS” of Taxes to the petrol Pump in Meghalaya

Shillong, June 22: The Hynniewtrep Youth Council today has written to the Chief Minister of Meghalaya to opposed the proposed “One Time Settlement” for recovery of outstanding taxes from Petrol Pumps across the State. The le6tter was sent to Deputy Chief Minister Mr Prestone Tynsong, and Taxation Minister Mr. James K Sangma.

In the letter sent to the Chief Minister the HYC said that they  have seen how the OTS Scheme for defaulters in payment of electricity consumptions in the State especially to industrial Units has cost the MeECL to the tune of more than Rs 150 Crores in revenue. For a State like Meghalaya, this a huge amount and in fact efforts should be made not to repeat the same practice again with any other department.

Base on the News Report the HYC said that the State’s Taxation Department is implementing the “One Time Settlement Scheme” for recovery of huge outstanding value added tax (VAT) from over 230 Petrol Pumps across the State.

It is also reported that the concern Department has failed to realised outstanding amount of Rs 650 Crores approximately from these Petrol Pumps in the last 3 years as Value Added Tax.

That, if this practice of OTS is to be extended to the Petrol Pumps in the State, in payment of VAT by waiving off 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  fail to understand how the Department concern came up with the Scheme 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.

In view of the provisions of the Act, is it 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.

The HYC question, is it not incumbent upon the Department concern to pursue the matter of these tax defaulters in the appropriate forum or the competent Court of Law and realised the outstanding Taxes as well as interests payable, if any, instead of providing them opportunity to pay less than they ought to.

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. 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.

The HYC pointed out that this taxable amount is being paid by the Consumers and not by the Dealers as contribution towards the State’s development programs. 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 as commission from every litre of fuels that they sell.

If at all the State Government wants to waived off the taxes, it should come up with a Scheme to refund the money taken from the Consumers to them rather than waiving off taxes to the dealers as bonus which have already been paid by the general public at the time of buying fuels from them.

In view of the above, we urged upon your good office to reconsider the OTS Scheme to Petrol Pump Dealers and direct the Department concern and the officials 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, said Mr Roy Kupar Synrem general secretary of the HYC.

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