This State Reduces VAT On CNG, Cooking Gas By 77.7%! With Just 3% VAT, Cooking Gas, CNG Will Be Cheaper
With an eye on corporation elections in major cities, including Mumbai, amid rising fuel prices, the Maha Vikas Agadi (MVA) government announced to reduce the Value Added Tax (VAT) on natural gas from 13.5 per cent to 3 per cent on CNG. In a move which would benefit around 3.2 lakh traders, an amnesty scheme was also announced.
Relief shall be provided to both, CNG as well as PNG consumers. At present, the retail rate of CNG are at Rs 66 per kg, which is a Rs 18 hike in CNG in the past one year. This also comes as a relief to those who are facing hikes for cooking gas lately across the state whose prices jumped up to Rs 39.50 per unit.
Experts explained that just in case there is any hike in the oil and natural gas due to the ongoing Russia-Ukraine war, some part of it will be absorbed with this relief.
800 Crore of Revenue Reduction For the State
As a counter to the rising petrol and diesel prices, over 8 lakh people in the Mumbai Metropolitan Region who include auto-taxi and bus owners have already gone green and as many as 3 lakh private car users are now opting for the green fuel. There are 18 lakh households in MMR that use PNG. Ajit Pawar said that this reduction on VAT on natural gas would mean a revenue reduction of Rs 800 crore for the state.
The minister said that the natural gas is “environment-friendly” and is largely used for domestic piped gas supply and also for CNG-powered motor vehicles, auto-rickshaws, taxis and private vehicles.
The 5-point Development Agenda & The Revenue Deficit
The CM Uddhav Thackeray said that the Budget would take a huge leap forward for the overall development of the state by overcoming the pandemic. The five-point development agenda would help the state to achieve the target of one trillion dollar economy.
Due to various important announcements in the Budget, such as an amnesty scheme for various tax concessions, tax concessions on natural gas and stamp duty as well as tax waiver to promote water transport, the development of various sectors would get a big boost said the CM.
According to the Budget Estimates of 2022-23, there is a revenue deficit of Rs 24,353 crore resulting from the revenue receipts of Rs 4,03,427 crore and revenue expenditure of Rs 4,27,780 crore.
Pawar in his Budget speech while tabling it in the Assembly on Friday said that “Though the economy has slowed down, the government intends to revive the economy through Panchasutri of Development Programme. This expenditure and expenditure on welfare schemes being inevitable, ensuing deficit, may be viewed favourably”.