Maharashtra govt may roll back 5% tax on LPG for domestic use

The ruling Congress and Nationalist Congress Party (NCP) members have demanded roll back of the five per cent tax on LPG for domestic use, introduced by state finance minister Ajit Pawar in his budget proposals for 2012-13.

The Congress took the lead and during a representation to chief minister Prithviraj Chavan, made a strong pitch for withdrawal of the tax, especially at a time when inflation was still high.

The NCP, not prepared to give the Congress any credit for the roll back, held a legislative meeting on Tuesday and unanimously passed a resolution demanding the reversal of the tax.

The government had projected a revenue mobilisation of Rs 200 crore through the imposition of the tax. However, it is expected that finance minister Ajit Pawar, during his reply to the discussion of annual budget, would announce the withdrawal of tax. The relationship between the ruling Congress and the NCP is currently strained, especially after the NCP won 13 presidents' posts and 14 posts of vice-presidents in the zilla parishads, after joining hands with BJP, Maharashtra Navnirman Sena.

The Congress had criticised NCP's move saying it had joined hands with communal parties to assume power. The NCP retaliated saying the Congress had made the beginning and it was following its path.