Thiruvananthapuram: Chief Minister Oommen Chandy has said that the five per cent VAT on subsidy component on LPG cylinders would be waived with retrospective effect from Jan. 1.
This would come into effect from the day the notification for the same is issued. The amount collected till then will be paid back to the consumers.
Chandy said this would reduce LPG price by about Rs 40 per cylinder. The subsidy component for an LPG cylinder is now Rs 856. However, the customer gets only Rs 814 as five per cent VAT is reduced from the subsidy.
The forgoing of VAT would mean an annual revenue loss of Rs 247 cr. He also said the State would pressure the Central Government for giving subsidy component for orphanages and charitable societies.
Pooh-poohs LDF claims for withdrawing stir
He pooh-poohed the claims of CPM leaders that they had called off the stir against LPG price hike as they had succeeded in bringing the Centre under pressure to increase the number of LPG cylinders for domestic consumers from nine to 12 per year.
The Congress had put pressure on the Centre for increasing the number of LPG cylinders. Congress vice-president Rahul Gandhi had also supported this demand. In fact, Petroleum Minister Veerappa Moily had announced that the demand of the State Government on this issue would be considered.
Now the CPM was claiming that the decision was a fallout of its agitation. The people of the State know what had actually happened, Chandy said.
This CPM agitation was one of the latest in its series of flop struggles. The same was the case with the agitation of the DYFI alleging that was a freeze on appointments in the state. It had to be called off as there was nothing of that sort in the state, Oommen Chandy said.
