Delhi Govt Withdraws 5% VAT on CNG

Delhi Chief Minister Sheila Dikshit announced a withdrawal of five percent value added tax (VAT) levied on CNG on Monday, June 4, 2012. As a result, the price of CNG in the Indian capital will remain unchanged at Rs 35.45 a kg.

The withdrawal comes after protests from legislators from both the ruling Congress and the opposition to levy of five percent VAT on CNG.

"We consider the sentiment of people, and keeping in view their demands, we have decided to remove the VAT on Compressed Natural Gas (CNG)," Dikshit said.

Had the raise been implemented, the price of CNG would have become Rs 37.20 a kg but after Monday's announcement it shall remain unchanged at Rs 35.45 a kg.

The levying of five percent VAT was announced by the chief minister on May 28 while presenting the budget for Delhi. The CNG powers auto-rickshaws, buses and most taxis in the capital, besides a large number of private vehicles.