Aizawl (www.zoramobserver.com): Mizoram Finance and Taxation Minister Lalsawta today said that the state government was reeling under acute financial crisis as the inflow of revenue or income to the state has severely decreased since the implementation of Goods and Services Tax in July.
He said that the Centre released less than 50 per cent of allocated funds after implementation of the GST and attributed poor internet connectivity to the inefficient implementation of the new tax regime.
Lalsawta said that Mizoram only able to receive less than 50 per cent of the total revenue received through various taxes since the implementation of the GST.
An emergency meeting top officials of the state taxation department was convened today under the chairmanship of the minister to deliberate and review taxes collected through the GST.
Sources said that the total revenue of many states has decreased by 33 per cent since the implementation of the new tax regime.
According to Lalsawta, poor internet connectivity was the main reason behind the inefficient implementation of GST in the country.
According to Lalswata, the state would face further problems if it revised the salaries of government employees in line with the recommendations of the 7th Pay Commission.
He said that the state government would incur additional expenditure of Rs 800 crore annually for salaries and pension fund if the recommendation of the 7th Pay Commission is implemented.
The finance minister also said that the process for constitution of a committee to study the recommendation of the 7th Pay Commission which was approved by meeting of council of ministers recently is under process. “The government is taking earnest effort to constitute the committee soon,” he added.
Meanwhile, the Federation of Mizoram Government Employees and Workers (FMGEW), the apex body of all state government employees’ association, threatened to launch an agitation here, accusing the state government of deliberately delaying the implementation of the pay panel’s recommendations.
With inputs from PTI and AIR, Aizawl