The Delhi government on Monday withdrew the 4-per cent Value Added Tax (VAT) on LPG cylinders and rolled back the 5-per cent VAT it had announced on CNG,which fuels buses and autorickshaws in the Capital. To compensate for the concession being offered to Delhi residents,Finance Minister A K Walia,meanwhile,hinted that registration fee on vehicles and liquor prices will go up. The move comes a week after Walia withdrew the subsidy of Rs 40 per LPG cylinder while presenting the Budget on March 22. After the VAT rollback,a cooking gas cylinder would cost Rs 310 from April 1 it was to cost Rs 322,up from the present Rs 282,before this. The Budget,meanwhile,was passed unopposed after all Bharatiya Janata Party MLAs,barring Leader of Opposition V K Malhotra,were asked by the Speaker to leave the House as they created a din during the Question Hour. The Opposition members were demanding that government withdraw VAT on all items. Walia also announced a VAT rollback on a host of items. He said the government has decided to bring down VAT for tea,coffee and cocoa to 5 per cent (down from the proposed 12.5 per cent). Plastic and glass scrap,embroidery zari items have now been made VAT-free. The VAT hike on diesel from 12.5 per cent at present to 20 per cent remains,as does the VAT increase on kerosene stoves,lanterns and petromax. The Finance minister reasoned that not many people buy these products any more. According to Walia,the total concession offered by the government comes to Rs 250 crore. Earlier,the increase in VAT gave the government an additional revenue of Rs 1,030 crore. Hinting at the governments plans to recover the money,Walia told reporters after the Assembly session that the Transport department has several innovative schemes through which we will be able to cover up the lost revenue. He said the department proposes to increase registration taxes on vehicles: for cars worth up to Rs 4 lakh,the registration fee would be increased from the present 2 per cent to 4 per cent. For vehicles above the Rs 4-lakh bracket,the registration would range from 4 to 9 per cent. Prices of liquor will also go up once our new excise policy is notified, Walia said. The proposed increase in automobile registration fee is expected to get the government Rs 200 crore revenue,and the increase in liquor prices will mean an additional Rs 100 crore revenue for the government. Walia also reiterated that Delhi continues to be a state with the lowest taxes.
