LPG cylinders to cost more in Uttarakhand

CM has withdran 5% VAT relief on subsidized, non-subsidized cooking gas

After the centre’s decision to hike fuel prices through decontrol mechanism, it is virtually double jeopardy for the people in Uttarakhand with the state government withdrawing Value Added Tax (VAT) relief on the Liquefied Petroleum Gas (LPG) cylinders.

In the latest decision, chief minister Vijay Bahuguna, who is heading Congress-led coalition government in the hill state, withdrew 5% VAT relief on the subsidized and non-subsidized cooking gas cylinders.

This 5% relief was given by the former BJP government when the centre had increased the prices of subsidized cylinders to Rs 398 few years ago. “The government has withdrawn the 5% relief,” confirmed principal secretary finance Radha Raturi.

Through this VAT withdrawal, consumers will have to dole out Rs 21 more for purchasing a subsidized gas cylinder. Similarly, the non-subsidized cylinder has become costlier by Rs 48.50 in the state. When contacted, dealers said they have started selling the subsidized cylinder at Rs 431 and non-subsidized cylinders for Rs 994.50 since yesterday.   

In October last, petrol in the hill state became costlier by Rs 2.65 per litter after government withdrew the VAT shortly after Bahuguna’s son Saket lost at the hustings in the Tehri parliamentary byelection.

“We have to take some tough decisions in order to collect funds for running welfare and developmental schemes in the state,” said Bahuguna.

Surprisingly, the opposition criticism against the government was muted. Former BJP chief ministers B C Khanduri, Ramesh Pokhriyal Nishank and B S Koshiyari remained silent on the issue. However, leader of the opposition Ajay Bhatt condemned the move and said the BJP would oppose the decision tooth and nail.