Govt withdraws LPG subsidy benefit to consumers with above Rs 10 lakh taxable income

The change to effect initially on self-declaration basis while booking cylinders from January 2016 onwards

The Government has decided to withdraw the benefit of LPG subsidy for LPG consumers, self of spouse, having taxable income of more than Rs 10 lakh during the previous financial year computed as per the Income Tax Act, 1961. In keeping with the approach of trusting the citizens, this will be given effect to initially on self-declaration basis while booking cylinders from January 2016 onwards.

At present, there are 16.35 crore LPG consumers in the country. With the implementation of the PAHAL Scheme (DBTL), the subsidy is being transferred directly to the Bank Account of 14.78 crore LPG Consumers. The objective of the scheme was to ensure that the subsidy benefits go to the targeted group.

The Government had also given a call to the well-to-do households for voluntarily giving up LPG subsidy. So far, 57.50 lakh LPG consumers have opted out of LPG subsidy voluntarily heeding the call given by the Prime Minister.

The subsidy saved from the 'GiveitUp' campaign is being utilized for providing new connections to the BPL families under the 'Giveback' campaign. This enables provision of LPG, a clean fuel, to poor households by replacing the conventional fuels such as kerosene, coal, fuel wood, cow dung, etc. relieving the poor of the hardships and health hazards from such fuels.