After the major disappointment of the huge hike in the prices of petrol, some relief has been brought for the consumers as the proposal for the hike in the prices of CNG that fuels the public transport on Delhir roads by Rs. 1.75 has been dropped. On May 28, Chief Minister Shiela Dixit proposed to impose a Value Added Tax (VAT) of five percent on CNG.
The hike would have helped generate around Rs. 110 crore in revenue while withdrawing VAT on the increased component of the petrol. Dikshit said, “The VAT on 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”.
The chief minister even clarified that she would not succumb to any pressure to withdraw the tax. Apart from the members of BJP, even many of the Congress MLAs have openly criticised the decision to impose VAT on CNG.
The Congress MLAs have argued that the increase in the price of the fuel will result in hike in taxi and auto fare. This will in turn have a negative effect on the party ahead of the assembly polls.