Citing pubic sentiments, Dikshit withdraws VAT on CNG (Lead)June 4th, 2012 - 8:31 pm ICT by IANS
New Delhi, June 4 (IANS) Succumbing to popular “sentiments” and public demand, Delhi Chief Minister Sheila Dikshit Monday reversed her decision of imposing five percent VAT on CNG thereby maintaining its current price at Rs.35.45 a kg.
Dikshit’s U-turn on compressed natural gas (CNG) price came within days of protests from the Congress and Bharatiya Janata Party (BJP) legislators. The move was also taken keeping in view the electoral prospects of the Congress in assembly elections next year.
The levying of five percent VAT was announced by the chief minister on May 28 while presenting the budget for Delhi.
“We are people’s government and considering the sentiments and demand of people we have decided to withdraw VAT on CNG,” Dikshit said during a discussion on the budget in the assembly.
Had the hike been implemented, the price of CNG would have become Rs.37.20 a kg but after Monday’s announcement it shall remain unchanged at Rs.35.45 a kg.
Asked about the reversal of the announcement, Dikshit said: “This was not a final shape of the budget and it was yet to be implemented.”
CNG powers auto-rickshaws and buses and most taxis in the capital besides a large number of private vehicles.
Delhi government had also announced a reduction of 20 per cent VAT on the hiked component of petrol prices in the capital. The petrol price will come down by 92 paise from the current Rs.71.60 per litre.
Officials said the new petrol prices will be effective in two or three days.
- Government withdraws VAT on CNG - Jun 04, 2012
- Petrol to be cheaper, CNG costlier in Delhi (Lead, superseding earlier story) - May 28, 2012
- CNG prices hiked in Delhi and neighbourhood - Mar 05, 2012
- Petrol to be cheaper, CNG costlier in Delhi (Second Lead) - May 28, 2012
- IGL raises gas prices by 0.20 paise in UP - Sep 08, 2012
- Regulator asks IGL to reduce gas prices - Apr 10, 2012
- Delhi's autos, taxis to go on strike from Aug 3 - Jul 20, 2012
- Have power to frame CNG tariff rules, regulator tells court (Lead) - May 22, 2012
- Court reserves order on CNG price cut - May 24, 2012
- Auto, taxi fare charges likely to increase in Delhi - Jul 25, 2012
- CNG price raised by Rs.2.30 in national capital region - Sep 30, 2011
- No stay on regulator's order to cut gas prices in Delhi (Lead) - Apr 11, 2012
- CNG price raised marginally - Jun 04, 2011
- Cut tax to make diesel cheaper, say Delhi dealers - May 10, 2012
- CNG prices raised Rs.2.90 a kg in Delhi (Lead) - Jul 06, 2012
Tags: assembly elections, bharatiya janata party, bjp, chief minister, compressed natural gas, delhi government, electoral prospects, legislators, New Delhi, paise, petrol price, petrol prices, powers auto, private vehicles, rickshaws, sentiments, sheila dikshit, taxis, u turn, vat