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State News

May 23, 2020

Mizoram govt to deduct from basic pay of govt employees, hike fuel prices and reduce office expenses from 1st June

In Mizoram, the state government has decided to take austerity measures due to the ongoing financial crisis in the country in the wake of COVID-19 pandemic. The state government also decided to cut an amount from basic pay of the government employees, hike petrol and diesel prices from 1st June and also reduce office expenses.

 Chief Minister Zoramthanga said this while addressing a press meet in Aizawl today. He said that the decision was taken at a meeting of the council of ministers held yesterday. The state finance department was authorized to deduct salaries of the employees as a loan which will be refunded once the financial condition of the state revives. 

The Chief Minister, who also holds finance portfolio said that the deduction is likely to be 10 to 15 per cent as per categories of employees, adding that the finance department will decide over the rate of deduction.
Also, the Taxation Minister Lalchamliana said that 12 per cent VAT levied from diesel will be increased to 14.5 per cent and the VAT on petrol would be hiked to 25 per cent from 20 per cent from June.
The Chief Minister Zoramthanga added that the government has been facing severe problems due to lockdown and the standstill in business and industrial activities. Collection of taxes has suffered serious setbacks and is affecting the flow of funds from the Centre to the state.
The Chief Minister further said that his government took such decisions to gain savings in the state exchequer to purchase food for the common people and avoid a deeper financial crisis.

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