Sheila relents, rolls back 5% VAT on CNG | delhi | Hindustan Times
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Sheila relents, rolls back 5% VAT on CNG

You need not fear a hike in autorickshaw fares. Inflation-hit Delhiites may be relieved to know that the Sheila Dikshit government has withdrawn the proposal to impose 5% VAT on CNG. HT reports. Other proposals that were passed

delhi Updated: Jun 05, 2012 01:13 IST
HT Correspondent

You need not fear a hike in autorickshaw fares. Inflation-hit Delhiites may be relieved to know that the Sheila Dikshit government has withdrawn the proposal to impose 5% VAT on CNG.

The budget proposal of imposing 5 per cent VAT on CNG had drawn flak not only from the public and Opposition, but even from a section of Congress MLAs.

Imposition of VAT on CNG would have generated a revenue of nearly Rs. 110 crore. Dikshit has also done away with the 5% VAT on textiles. "This move of ours would have adversely affected textile trade of Delhi," she said. In her budget speech on May 28, Dikshit had done away with VAT on the increased component of petrol.

The budget was passed by the Delhi Assembly on Monday following discussion on the increased VAT component on CNG among other issues.

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The VAT would have pushed the CNG price to Rs. 37.20 per kg from the current Rs. 35.45 per kg. "Many MLAs had expressed their displeasure and some of them had even met me in this regard. We are sitting here for the public and right now price rise is a very important issue. We want to give some relief to the people," the Delhi CM said.

The government has also decided to cut VAT on the hiked component of petrol, which would make the fuel cheaper by another 92paise. The new rates would be applicable once the notification is issued.

A special cabinet meeting was also held on Monday wherein a number of MLAs and ministers claimed that such an increase would have a negative effect on the party ahead of the next year's assembly polls.

Congress MP from west Delhi constituency Mahabal Mishra and 15-odd party MLAs had demanded a rollback. The Opposition too had called for a Delhi bandh in protest against the hike in VAT.