Delhi: Govt bows to Opposition, LPG is cheaper



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Bowing to Opposition pressure, Delhi government on Monday withdrew a four per cent value added tax on cooking gas giving a Rs 12-13 relief to consumers though it did not roll back the withdrawal of Rs 40 subsidy for LPG cylinders.

The government also withdrew the five per cent VAT on compressed natural gas besides bringing back the VAT for tea, coffee and cocoa to five per cent from the proposed 12.5 per cent.

The measures were announced by finance minister A K Walia in Delhi Assembly during his reply to discussions on the budget presented on March 22.

With the withdrawal of four per cent VAT on cooking gas, the price of an LPG cylinder will come down by Rs 12-13. After the withdrawal of Rs 40 subsidy, an LPG cylinder used to cost Rs 322.80.

Walia's budget proposals to increase VAT on several items had triggered protests from opposition BJP as well as from ruling Congress members of the Legislative Assembly.

Earlier in the day, high drama was witnessed in the Delhi Assembly when Bharatiya Janata Party MLAs were removed from the House after they trooped to the Well and resorted to slogan shouting demanding roll back of withdrawal of subsidy on cooking gas and increase in VAT on several items.

Minutes after the House assembled, Leader of Opposition V K Malhotra raised the issue of price rise and said several Municipal Corporation of Delhi councillors were injured during a protest near the Assembly with police resorting to the use of water cannon and demanded a special discussion on the issue.

Soon all the BJP MLAs were on their feet displaying posters and demanded immediate withdrawal of increase in VAT on several items and roll back of subsidy withdrawal on cooking gas.

As repeated appeals by Speaker Yoganand Shastri fell on deaf ears, he adjourned the House for 15 minutes.

When the House met again after 15 minutes, all BJP MLAs trooped to the well and again started shouting anti-government slogans.

The Speaker tried to pacify them but the unrelenting BJP MLAs continued the protest following which the Speaker asked the marshals to remove senior MLAs H S Balli, Karan Singh Tanwar, Ravindra Bansal, Subhash Sachdeva and Harsh Vardhan from the House.

After removal of these members, the remaining BJP MLAs continued their sloganeering after which Shastri named the BJP MLAs one by one asking them to go out of the House and asked the marshals to ensure that they go out of the House.

 
gas1.jpg
Bowing to Opposition pressure, Delhi government on Monday withdrew a four per cent value added tax on cooking gas giving a Rs 12-13 relief to consumers though it did not roll back the withdrawal of Rs 40 subsidy for LPG cylinders.

The government also withdrew the five per cent VAT on compressed natural gas besides bringing back the VAT for tea, coffee and cocoa to five per cent from the proposed 12.5 per cent.

The measures were announced by finance minister A K Walia in Delhi Assembly during his reply to discussions on the budget presented on March 22.

With the withdrawal of four per cent VAT on cooking gas, the price of an LPG cylinder will come down by Rs 12-13. After the withdrawal of Rs 40 subsidy, an LPG cylinder used to cost Rs 322.80.

Walia's budget proposals to increase VAT on several items had triggered protests from opposition BJP as well as from ruling Congress members of the Legislative Assembly.

Earlier in the day, high drama was witnessed in the Delhi Assembly when Bharatiya Janata Party MLAs were removed from the House after they trooped to the Well and resorted to slogan shouting demanding roll back of withdrawal of subsidy on cooking gas and increase in VAT on several items.

Minutes after the House assembled, Leader of Opposition V K Malhotra raised the issue of price rise and said several Municipal Corporation of Delhi councillors were injured during a protest near the Assembly with police resorting to the use of water cannon and demanded a special discussion on the issue.

Soon all the BJP MLAs were on their feet displaying posters and demanded immediate withdrawal of increase in VAT on several items and roll back of subsidy withdrawal on cooking gas.

As repeated appeals by Speaker Yoganand Shastri fell on deaf ears, he adjourned the House for 15 minutes.

When the House met again after 15 minutes, all BJP MLAs trooped to the well and again started shouting anti-government slogans.

The Speaker tried to pacify them but the unrelenting BJP MLAs continued the protest following which the Speaker asked the marshals to remove senior MLAs H S Balli, Karan Singh Tanwar, Ravindra Bansal, Subhash Sachdeva and Harsh Vardhan from the House.

After removal of these members, the remaining BJP MLAs continued their sloganeering after which Shastri named the BJP MLAs one by one asking them to go out of the House and asked the marshals to ensure that they go out of the House.
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The recent rollback of the four percent VAT on cooking gas and five percent VAT on CNG by the Delhi government marks a partial but notable response to strong opposition pressure and public sentiment. Finance Minister A.K. Walia’s announcement in the Delhi Assembly came amid heated protests from both the BJP and members of the ruling Congress party, who expressed concern over the financial burden these tax hikes placed on ordinary citizens. While the rollback offers some relief—bringing LPG cylinder prices down by ₹12–13—it is important to note that the withdrawal of the ₹40 subsidy on LPG remains in place, keeping the overall cost relatively high for consumers.


The Assembly witnessed intense drama, with BJP MLAs staging protests inside the House, demanding a full rollback of the LPG subsidy cut and VAT increases on various essential items. Their protests, marked by slogan shouting and entry into the Well of the House, led to their forcible removal by marshals—a reflection of the strong emotions and political stakes involved. This incident also underscores the growing public and political sensitivity to rising prices of essential commodities, especially in urban centers like Delhi.


While the government's decision to lower VAT on tea, coffee, and cocoa from 12.5 percent to five percent is a positive step, the broader issue of managing subsidies and tax burdens in a fiscally responsible yet people-friendly manner remains a challenge. The events in the Assembly highlight the delicate balance governments must maintain between revenue generation and public welfare. Going forward, constructive dialogue between ruling and opposition parties will be essential to ensure that budget decisions address both economic constraints and the daily needs of citizens.​
 
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