'State to continue earning from alcohol consumption'

Kolkata: State Finance and Industry minister Amit Mitra said on Thursday that the state will continue to earn its revenue from 'alcohol for human consumption' though the Central government

introduced Goods and Service Tax (GST). Introducing the 'The West Bengal Taxation Laws (Second Amendment) Bill 2017, at the state Assembly Mitra said that it would give the state the authority to charge sales tax and Value Added tax (VAT) on certain products that is kept under the ambit of GST.

"There are two products — alcohol for human consumption and petroleum products where the state government can impose sales tax. We will continue to enjoy VAT on natural gas and crude oil like aviation turbine fuel. All four products don't come under the ambit of GST," Mitra said.

The state is likely to earn more revenue from alcohol after the amendment and it was because of Mitra that it is out of the GST ambit. When the Centre was on its way to tax extra neutral alcohol (ENA), a derivative of

sugar cane molasses used in a string of industries from cosmetics to alcoholic beverages, Mitra was the first one to raise his voice.

He had said then that if the GST Council imposed tax on ENA, it would be seen as taxing 'alcohol for human consumption' which through Constitutional (101st Amendment) Act, 2016 has been kept out of the GST.

Mitra slammed the Central government for their hurried approach in the implementation of the GST. "The lifesaving drugs are still not ready. The small businessmen are at a complete loss," he added.