Agartala, Jun 26 (UNI) The Tripura government today announced two per cent Value Added Tax (VAT) subsidy on LPG and entire four per cent subsidy on kerosene oil with immediate effect while Chief Minister Manik Sarkar assured the Assembly that the government would consider another 0.5 per cent VAT on LPG.
Announcing the decision in the Assembly, Finance Minister Badal Choudhury said the state would incur revenue loss of about Rs nine crore annually with subsidy of Rs two crore on LPG, Rs six crore on petrol and diesel and Rs 74 lakh on kerosene oil.
Following the subsidy each LPG cylinder would cost Rs 333 in the state, Mr Choudhury said claiming that Tripura was the first state in India, which announced VAT subsidy to extend help to the poor section of the society.
However, the House unanimously passed a resolution to give a further subsidy of Rs 51 and the proposal had been sent to the Prime Minister today.
The Congress MLAs were opposed to the move initially saying that the Centre had already given Rs 250 subsidy on LPG countrywide and it was now the duty of the state government to take burden of the rest of the increased amount, but finally agreed to reconsider the issue.
With the demand from Opposition MLAs Tripura Chief Minister Manik Sarkar assured in the Assembly that taking the instance of Delhi and Andhra Pradesh, the state government has already reduced two per cent VAT on LPG and tax grant of five and 2.5 per cent on petrol and diesel respectively, while another 0.5 per cent VAT would be considered on cooking gas (LPG).
'' Tripura does not have any revenue source other than tax collection and on LPG the state is collecting only the minimum amount of VAT, which cannot reduce further as per the central low,'' Mr Sarkar said.
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