23 March 2010;dailypioneer.com:New Delhi:At a time when the citizens are already facing the brunt of price rise, the Delhi Government on Monday dropped another bombshell in the households of the Capital by withdrawing subsidy on cooking gas and increasing the VAT rate on petroleum products (diesel and CNG), mobile phones and its accessories, aerated drinks, writing instruments, watches, coffee beans, desi ghee, dry fruits, kesar, utensils and cutlery items, all of which would be costlier from April 1. Presenting the Budget amid vociferous protests by the Opposition BJP, Finance Minister Ashok Walia on Monday announced the withdrawal of Rs 40 subsidy on cooking gas cylinder for domestic consumers besides an increase in VAT on diesel and CNG. The cost of cooking gas cylinder will be increased from Rs 281 to Rs 322.80 per cylinder. With increase in VAT from 12.5 per cent to 20 per cent, diesel will be costlier by Rs 2.37 per litre. The price of diesel would now be Rs 37.84 per litre in the Capital. The CNG will cost Rs 22.79 per kg with the hike of Rs 1.09 per kg. A five per cent tax has been imposed on the Compressed Natural Gas (CNG), the fuel used for public transport like buses and auto-rickshaws. At present, there is no VAT on CNG. The VAT rate on aerated drinks has also been enhanced from 12.5 per cent to 20 per cent. Defending the hike in VAT rate and withdrawal of subsidy on cooking gas cylinder, Walia said the resources of the Delhi Government have been exhausted. “In view of increased expenditure due to Commonwealth Games-related projects and schemes and inadequate collection of taxes due to downturn in the economy has put tremendous pressure on the Government to hike VAT and withdraw subsidy,” he said. The Minister said the withdrawal of subsidy on cooking gas cylinder would help to save Rs 169 crore and generate Rs 350 crore from diesel and Rs 108 crore from CNG. According to Walia, all the States have already withdrawn subsidy on LPG. Presenting a Rs 26,000 crore Budget (Rs 11,200 crore on Plan and Rs 14,660 crore on non-Plan), Walia said the highest allocation went to transport sector which has been given Rs 4,224 crore as against last Budget’s allocation of Rs 3,069 crore. The Budget allocation for water and sanitation is of Rs 1,500 crore while Rs 1,417 crore is earmarked for urban development. Rs 1,243 crore is for health, Rs 1,122 crore for education and Rs 807 crore for social sector. The Budget also proposes increase in VAT on various items like desi ghee, house-hold plastic items, kerosene stoves, wood, inverters, tea, coffee locks, lanterns, fertilisers and all utensils and cutlery items, including pressure cooker, from 5 per cent to 12.5 per cent. The VAT rate on atta, maida, suji, amla, harad, bahera, shikakai, supari, ratanjot, hawan samagri, incense sticks, midday meal and schoolbags would remain same. The Budget also proposes raising of maximum registration fee on documents in registrar’s office to Rs 500 and registration fees in other slabs to be enhanced proportionately. The Budget also proposes increase in the subsidy given to students for uniforms from the next academic session. “Now Rs 500 per annum will be given to girl students of MCD primary schools on a par with students of Government schools. Similarly, Rs 700 will be given to students of Class VI-XII of the Delhi Government and Government aided schools,” he said. About 26 lakh students will benefit from this move, he said. Walia also proposed to enhance scholarship by Rs 50 to promote enrolment in schools.
Petrolstop is a division of Car Fuel Info Solutions, LLC Petrolstop.com is a registered trademark owned by Car Fuel info Solutions, LLC Website Design by Onazari Technical Solutions
