CM gives with one hand, takes with other
29 May 2012 4:30 AM GMT
With the Assembly poll looming ahead, Chief Minister Sheila Dikshit did keep her promise and slashed 20 per cent value-added tax (VAT) on the hiked petrol price in its annual budget on Monday.
Now, Delhiites would have to shell Rs 1.26 less in the capital to buy petrol. But, to counter check its losses, Delhi government proposed a fresh five per cent VAT on CNG.
After the increase last week, Delhiites are paying Rs 73.18 per litre of petrol, but now it will cost Rs 71.92. On the other hand, the CNG price will see an increase of Rs 1.70 more from its current Rs 35.45 per kilogramme, following the five per cent hike in VAT. The burden will be on CNG users and might possibly affect public transport budget of people in the city. In Delhi, most public transport vehicles, including DTC buses and autorickshaws, run on CNG.
The government, after slashing 20 per cent VAT on petrol, will bear a loss of around Rs 140 crore. On the other hand, around Rs 100 crore will be the revenue of Delhi government with the proposed five per cent VAT on CNG.
Dikshit, while presenting the budget for 2012-13, said, 'The price of petrol in Delhi is the lowest among all the metros and lower compared to the price in neighbouring cities of Haryana and Uttar Pradesh. I have considered the matter and am of the view that the citizens of Delhi need to be provided some relief. I propose to exempt the recently announced increase in the price of petrol from the levy of 20 per cent of VAT.'
Now, Delhiites would have to shell Rs 1.26 less in the capital to buy petrol. But, to counter check its losses, Delhi government proposed a fresh five per cent VAT on CNG.
After the increase last week, Delhiites are paying Rs 73.18 per litre of petrol, but now it will cost Rs 71.92. On the other hand, the CNG price will see an increase of Rs 1.70 more from its current Rs 35.45 per kilogramme, following the five per cent hike in VAT. The burden will be on CNG users and might possibly affect public transport budget of people in the city. In Delhi, most public transport vehicles, including DTC buses and autorickshaws, run on CNG.
The government, after slashing 20 per cent VAT on petrol, will bear a loss of around Rs 140 crore. On the other hand, around Rs 100 crore will be the revenue of Delhi government with the proposed five per cent VAT on CNG.
Dikshit, while presenting the budget for 2012-13, said, 'The price of petrol in Delhi is the lowest among all the metros and lower compared to the price in neighbouring cities of Haryana and Uttar Pradesh. I have considered the matter and am of the view that the citizens of Delhi need to be provided some relief. I propose to exempt the recently announced increase in the price of petrol from the levy of 20 per cent of VAT.'
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