Mumbai, Mar 1: All India LPG Distributors Federation has welcomed the Union Budget and has said it is a right step to reduce the subsidy on LPG by categorising it same as 'declared goods'.
This implies that the value added tax (VAT) on LPG will be charged at four per cent, instead of 12.5 per cent, throughout the country.
Federation president Pratap Doshi here said the retail selling price to the customer will, however, remain same.
He also hoped that the Government will further reduce the subsidy as a next step, by increasing the retail selling price to the consumers, except to those below poverty line, as per their submission and subsequent recommendation of Dr C Rangarajan Committee.
Besides, the Finance Minister has also taken one more step for the benefit of LPG consumers by reducing excise duty on gas hot plates, priced above Rs 2,000, he said.
Thus, the consumers will now have the benefit of using four-burner gas hot plate or cooking range at a competitive price, Mr Doshi added.