After PNG, CNG, and Electricity, Tripura Govt Eyes New Tax Hikes on Alcohol, Building Plans, and Land Diversion to Boost Own Revenue
By Our Correspondent
Agartala, July 13, 2025
Facing mounting fiscal pressure, the Tripura Finance Department has issued a formal directive to all government departments, urging them to identify new avenues for boosting state-generated revenue. This move could lead to a fresh wave of tax and fee hikes across multiple utility and service sectors over the next two to three months.
As per highly placed sources, the departments have been specifically instructed to examine and propose increased charges in the following key areas: Excise duties on alcohol, wine, and beer, Building plan approval charges and Land diversion fees. The notifications for increases charges of the land diversion fees has already issued.
This comes at a time when citizens of Tripura are already under financial strain due to significant increases in utility prices over the past seven years. According to compiled data: Compressed Natural Gas (CNG) rates have risen by Rs. 41.33 per kg, Piped Natural Gas (PNG) has increased by Rs. 21.80 per unit and Electricity tariffs have gone up by 25% for all consumer categories since 2018. These persistent hikes have placed a heavy burden on both household expenses and commercial operations across the state.
In addition, the cost of land conversion from agricultural use to industrial or commercial purposes has surged to 20%–25% per kani, a significant jump from previous rates.
The Agartala Municipal Corporation (AMC), which had already raised property tax, water dues, and building plan approval fees by nearly 50% since 2018, is now reportedly considering another 20%–25% increase in building plan charges. Internal files for this proposal are currently under process, justified by the need for enhanced internal resource mobilization.
Sources within the state administration admit that Tripura’s financial condition remains fragile, with heavy dependence on internally generated revenue until grants from the 16th Finance Commission are released. While the state leadership continues to promote the “Double Engine Model” for development, the practical impact appears limited, as the burden of balancing the budget increasingly falls on domestic taxation.
The latest directive from the Finance Department marks a broader strategy to narrow the fiscal deficit through sector-wise proposals. Internal consultations and departmental reviews are already underway, with phased implementation on the agenda.
If implemented, these proposed hikes may result in substantial cost escalations in alcohol pricing, real estate permissions, and land-related services, raising public concern over the growing affordability crisis in essential and semi-essential services.
As Tripura waits for external fiscal support, citizens brace for a tougher economic environment, with more taxes likely to be added to the already increasing cost of living.
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