This Article is From Mar 24, 2010

Sheila may review new LPG prices for Delhi

Sheila may review new LPG prices for Delhi
New Delhi: Under attack for withdrawing subsidy on cooking gas and increasing VAT on CNG and diesel, Chief Minister Sheila Dikshit on Tuesday said she was "open" to reviewing the budget proposals noting that her's is a "sensitive" government.

"We are open to it," Dikshit said when asked whether government will review its decision on withdrawing subsidy on cooking gas and increased VAT on a number of items.

Officials hinted that Government may try to readjust the price of cooking gas by reducing tax on it. They said government may also review its decision on increasing VAT on CNG.

"Our's is a sensitive government. We always try to address the problems of the common man," Dikshit said.

Presenting the budget, Delhi Finance Minister A K Walia on Monday had announced the withdrawal of the Rs 40 subsidy on LPG cylinders for domestic consumers besides an increase in VAT for diesel and CNG. (Read: Delhi budget decoded: This is what you will pay)

A five per cent tax was 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.

Yesterday, the Chief Minister had justified the hike saying the government was facing severe fund crunch due huge spending on various projects linked to the Commonwealth Games.
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