After facing pressure from various quarters due to the imposition of five percent Value Added Tax (VAT) on Compressed Natural Gas (CNG), Delhi Chief minister Sheila Dixit on June 4, forced to take back the hike. The minister had to face criticisms from opposition BJP as well as a section of the Congress legislators over the proposal of increase in VAT on CNG.
The proposal of the hike led to protests, when the BJP claimed that the hike will affect the common man who uses the public transport. The protest was also joined by many of the auto unions claiming that the hike in CNG would bring down the income of the drivers.
Dikshit, over the decision on the budget said, “Considering the demands in this regard, the government has decided to withdraw VAT on CNG.” The chief minister had earlier announced a cut on VAT on petrol after the Rs. 7.5 hike per litre imposed by oil companies.
Dikshit then formally announced the cut back and made petrol cheaper by 92 paise. The chief minister also dropped the proposal to impose five percent VAT on costly textile items in view of the sentiments expressed by people as well as the legislators.