VAT on CNG withdrawn by 5 percent in Delhi

Delhi people will feel slight relief as Delhi Chief Minister Sheila Dikshit on Monday announced withdrawal of a proposal to impose 5% VAT on CNG.

While presenting the budget for the year on May 28, Sheila Dikshit had proposed to impose the VAT on CNG which led to a hike of Rs 1.65 in the CNG prices to generate around Rs 110 crore in revenue while withdrawing VAT on the increased component of the petrol.

The decision of government to implement VAT on CNG, which is the lifeline of public transport in the capital, had to face a lot of protests and criticism by the public, the opposition BJP and even from some members of Congress MLAs.

Moreover, Delhi government has also planned to cut VAT on the hiked component of petrol, which would make the petrol price cheaper by further 92 paisa.

Earlier, the government had reduced the price of petrol by aprox. 1.70 paise, after few days of steep hike on the petrol prices by Rs.7.