"The state exchequer is not in a position to bear the burden of reduced taxes. It depends on sales taxes and the government cannot go for reducing the sales tax," official sources said today.
With the rise in prices of essential commodities becoming imminent in view of the rise in fuel prices and the state's sole dependence on road transport to procure commodities from outside, Taxation Minister J A Lyngdoh held a meeting with officials of the finance and tax departments yesterday.
The minister will hold another meeting with the officials on Monday to discuss the reduction of taxes to bring down fuel prices, sources said, adding the matter will be taken up after analysing the proposals of the tax department.
Meanwhile, the government has directed deputy commissioners of districts to ensure that transport agencies do not charge more from the public.
