NEW DELHI: The state government is not planning any withdrawal of 5% value added tax (VAT) on CNG recommended in this year's Budget. State Chief Minister Sheila Dikshit has clarified that the state government won't give in to the pressure from the opposition benches to postpone the tax on CNG.
While unveiling the state Budget last week, Dikshit recommended to impose VAT on CNG to generate nearly Rs 110 crore in revenue and also rolling back VAT on the risen component of petrol. The Delhi Assembly is slated to take up the Budget for nod today.
Moreover, the VAT will raise the CNG price from the current Rs 35.45 per kg to Rs 37.20 per kg, posting Rs 1.77 jump.
Meanwhile Dikshit also said, “The VAT in some of the neighbouring states is quite high. Moreover, the financial burden on account of levying of VAT on CNG would be more on the government as we run the largest fleet of CNG buses.”
Apart from BJP, many Congress MLAs have slammed the move to impose VAT on CNG claiming that any rise in price of the fuel will lead to the jump in taxi and auto fares.
Various autorickshaw unions had protested last week demanding rise in fares due to the increase in CNG prices.