On Thursday, Finance minister Ajit Pawar announced a rollback of 2% of the 5% Value added tax (VAT) on LPG gas for domestic use that was announced in the state’s finance budget on March 26. The VAT on LPG now stands at 3%, which will mean an increase of approximately Rs12 per cylinder as compared to Rs20 announced earlier.
The government will earn approximately Rs170 crore by way of this increase.
“In view of the demand made by both — my party, the NCP, and the Congress — and taking into account the general reaction in the House, I have decided to roll back the VAT announced on LPG by 2% bringing it to 3%. This will bring it at par with the VAT levied on kerosene at 3%, which is paid by the poorest of the poor in the state,” Pawar announced in the legislative council.
Reacting to the issue of electricity shortage in the state highlighted by many legislators, Pawar said that by December 2012 he would ensure there was no load-shedding in the state. “We will have a demand of 15,000 megawatts and a supply of 16,000 megawatts. However, this will not stay stable if the Opposition decides to oppose projects for the heck of it. It is time they soften their stand on projects like Jaitapur and sit and discuss issues. This is the need of the hour,” said Pawar, in an appeal aimed at the Shiv Sena, which has been opposing the Jaitapur nuclear power plant in Konkan.
On the issue of Mumbai getting inadequate funds, Pawar agreed that Mumbai needed more funds to support urbanisation in the city.