The oil ministry's announcement to make domestic cooking gas dearer for consumers whose incomes fall in higher tax brackets is a pragmatic move and should result in sizeable savings for the government. The move implies that if either the registered consumer or his/her spouse has an annual taxable income of Rs 10 lakh they would have to buy LPG cylinders at the market price.
The cap, set to come into effect from January 1, 2016, would likely provide impetus to Prime Minister Narendra Modi's "Give It Up" campaign, which asks well-off consumers to voluntarily surrender their LPG subsidy so that those dependent on firewood or cow dung for cooking fuel may be provided a cleaner option. But with the income declaration sought only voluntarily and many bound to use the loopholes in the scheme to transfer their LPG connections, one wonders whether the new measure will make a significant difference.
N J Ravi Chander, Bengaluru
Letters can be mailed, faxed or e-mailed to:
The Editor, Business Standard
Nehru House, 4 Bahadur Shah Zafar Marg
New Delhi 110 002
Fax: (011) 23720201 · E-mail: letters@bsmail.in
All letters must have a postal address and telephone number
