Manipur: 50% reduction in GST and VAT collection due to violence
Imphal: The ongoing ethnic conflict in Manipur, now in its seventh month, has taken a heavy toll on its economy. Goods and services tax (GST) and Value Added Tax (VAT) collections have incurred a loss of around 50%, according to Oinam Nabakishore, Vice President of the Janata Dal United, Manipur.
In the ongoing financial year 2023-24, the state government aimed to collect Rs 1970 crores in GST and Rs 261 crores in VAT. However, due to the violence, they have only managed to collect Rs 1080 crores in GST and a meager amount in VAT. This results in a projected shortfall of Rs 1090 crores for the upcoming financial year, as highlighted by Oinam Nabakishore, a former Manipur Chief Secretary.
Responding to a reporter's question, Oinam Nabakishore stated that the ongoing violence has disproportionately affected daily wage earners and transporters. They have faced significant economic hardship due to disruptions in trade and transportation.
Manipur Chief Minister N Biren Singh also recently acknowledged the impact of the violence on the state's revenue collection. He noted that the state government has only been able to collect 19% of the targeted GST due to the ongoing conflict.