Delhi rolls back VAT on cooking gas

Following criticism and pressure from the Opposition, Sheila Dikshit-led Delhi government today withdrew a four-per-cent value-added tax (VAT) on cooking gas, resulting in a Rs 12-13 relief to consumers. The Delhi government, however, did not roll back the withdrawal of the Rs-40 subsidy on LPG cylinders. The government also withdrew the five-per-cent VAT on compressed natural gas (CNG). The Delhi government’s budget had last week announced a rollback of Rs-40 subsidy on domestic LPG cylinder, increased VAT on diesel from 12.5 to 20 per cent and imposed a five-per-cent VAT on CNG.

LPG or cooking gas will now cost Rs 308 instead of Rs 321 a cylinder. The Rs 40-subsidy on LPG cylinders also included the VAT component. The diesel will, however, continue to be priced higher at Rs 35.29 a litre from Rs 32.92 earlier. Indraprastha Gas Ltd, the sole supplier of compressed and piped natural gas in Delhi, had said it would raise prices in the city by Rs 1.10 per kg from April 1, but with the rollback, this seems unlikely.