New Delhi: The Delhi government on Monday withdrew the Value Added Tax on Compressed Natural Gas (CNG). Earlier, it had imposed a five per cent VAT on CNG which led to a hike of Rs 1.65 in the CNG prices.
This came just a day after Delhi Chief Minister Sheila Dikshit on Sunday said that there would not be any rollback on the CNG VAT.
"We will not withdraw the VAT on CNG. We have levied only five per cent VAT on the fuel and that is justifiable," Sheila had said.
Presenting the budget on May 28, Sheila had proposed to impose the VAT on CNG to generate around Rs 110 crore in revenue while withdrawing VAT on the increased component of the petrol.
"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," Dikshit had said, clarifying that she would not succumb to any pressure to withdraw the tax.