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Sheila takes back CNG VAT hike

Sheila takes back CNG VAT hike
Perhaps, the looming assembly elections slated for next year has got something to do with Delhi Chief Minister Sheila Dikshit's decision on Monday to rollback the proposed 5 per cent value added tax (VAT) on CNG.

During the discussion at the assembly, Dikshit said, 'We have to fulfill the people's demand and people are fed-up with increasing prices. Considering the demands and sentiments in this regard, the government has decided to withdraw the VAT on CNG.'

Presenting the budget on 28 May, Dikshit had proposed a VAT on CNG to generate around Rs 110 crore in revenue while withdrawing VAT on the increased component of petrol.

The VAT would have pushed up the CNG price to Rs 37.20 per kg from the current Rs 35.45 per kg.

Not only the opposition, the Bharatiya Janata Party, but a number of Congress MLAs also openly criticised the move of imposing VAT on CNG.

Congress MP from west Delhi constituency Mahabal Mishra and around 15 party MLAs had demanded a rollback arguing that any increase in price of the fuel would result in hike in taxi and auto fares, which would have a negative effect for the party ahead of next year's assembly polls.

Talking to Millennium Post, Transport Minister Arvinder Singh Lovely, said, 'As a transport minister I proposed the effect of VAT on CNG to CM. It was totally CM's decision to rollback the entire VAT on CNG and there was no pressure from our side. In all the 13 years of our government, this is the best budget that we can bring out for the commoners'.

The Delhi government has also decide to cut VAT on the hiked component of petrol, which would make the fuel price cheaper by 92 paisa.
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