Delhi Govt. rolls back cooking gas hike by Rs.15, VAT on CNG

New Delhi, Mar 29(ANI): The Government of National Capital Territory of Delhi on Monday announced a roll back of hike in LPG cylinders' prices by Rs.15 and the value added tax (VAT) on compressed natural gas (CNG).

The Delhi Government had earlier withdrawn the subsidy of Rs.40 on LPG cylinders and levied a five percent VAT on CNG.

It means that the price of LPG gas cylinders will now increase by Rs. 25 and can be purchased at Rs 307.80 per unit by general public in Delhi.

On March 22, announcing the budget, Delhi Finance Minister A. K. Walia had said that the withdrawal of subsidy on LPG and enhancement in VAT rates were necessitated by the increased expenditure on infrastructural projects related to Commonwealth Games 2010.

The Delhi Government had removed the current subsidy of Rs. 40 on the LPG, which would have led to increase in prices up to Rs 322.80 per gas cylinder.

Walia had said that the withdrawal of subsidy would have relieved the State Government of a burden of Rs 160 to Rs 170 crore per annum.

The VAT on CNG for use in transport sector had been hiked to five per cent, which would have translated into a hike of Rs 1.09 per litre.

The decision for a roll back comes after the Bharatiya Janata Party (BJP) staged various demonstrations in the national capital, including one outside the residence of Delhi Chief Minister Sheila Dikshit, to protest against increase in prices of essential items and imposition of Value Added Tax on items of daily use.

On March 23, addressing the protesters, senior BJP leader Vijay Goel accused the Delhi Government of delaying projects related to the Commonwealth Games and then awarding them to a few favoured contractors through work orders instead of tendering process.

"Common man is being robbed in the name of Commonwealth Games. Sheila Dikshit government has become the government of privileged few. Money is being squandered away in the name of Commonwealth Games. The money is being spent wrongly, there is mismanagement and above all there is rampant corruption. Corruption is to the tune of millions and billions of rupees that must be probed," Goel had said. (ANI)