Cooking gas costlier, Delhi budget hits middle class

The people of national Capital who are yet to get over the fuel hikes in the Union Budget of February, suffered a fresh blow on Monday when the Delhi Government withdrew the subsidy on cooking gas, making a cylinder costlier by Rs 40.

It also raised VAT on a whole range of products including diesel and high-end mobiles to fetch an additional Rs 1,100 crores to raise funds for the Commonwealth Games.

Presenting a Rs 26,000 crore budget, Delhi Finance Minister A K Walia said the government has also decided to impose a five per cent tax 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. This would mean an immediate hike in basic fares by the auto mafia, affecting working women and college girls who avoid travel by crowded buses. With the withdrawal of subsidy on LPG, a cooking gas cylinder in the national capital will now cost Rs 322.80 from the earlier cost of Rs 281.20.

Walia attributed the escalation to the mega sporting event Commonwealth Games in October this year, which was creating a dent in the city government's pockets.

He proposed rise 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 cookers and pans.

- Asian Tribune -