Delhi govt withdraws VAT on CNG

Delhi Chief Minister Sheila Dikshit on Monday announced a withdrawal of five percent value added tax (VAT) levied on CNG. As a result, the price of CNG in the capital will remain unchanged at Rs.35.45 a kg.

The withdrawal comes after protests from legislators from both the ruling Congress and the opposition to levy of five percent VAT on CNG.

While replying on the budget discussion she said, “Inflation and public demand is the reason for withdrawing these tax proposals and it is in no way the rollback because it was only proposals”.

She assured that tax exemption announced on petrol will continue and the petrol in Delhi  will be cheaper by 92 paisa after the budget notification. The file for the notification had beensent to LG.The budget proposals were passed by voice vote.

Had the raise been implemented, the price of CNG would have become Rs.37.20 a kg but after Monday's announcement it shall remain unchanged at Rs.35.45 a kg.

Criticizing the budget, BJP MLA Ramesh Bidhuri said, “If the government is working so good then why did they lost in MCD elections and if Chief Minister presented such a good budget then why she had to withdrew her own proposals within a week."

The levying of five percent VAT was announced by the chief minister on May 28 while presenting the budget for Delhi. The CNG powers auto-rickshaws and buses and most taxis in the capital besides a large number of private vehicles.