Uttarakhand has decided to withdraw the 5 per cent value added tax waiver on LPG, making it costlier by Rs 21 to Rs 49 in the State.

A subsidised LPG cylinder, so far available for Rs 410, will now cost consumers Rs 431 while a non-subsidised LPG cylinder would now cost them Rs 994.50 instead of Rs 946. Principal Secretary (finance) Radha Raturi on Thursday said the State Government had decided to withdraw the 5 per cent VAT waiver being given on LPG for the last few years.

The new decision deals a fresh blow to people already suffering due to the hike in LPG prices and cap on subsidised LPG. The withdrawal of VAT waiver on LPG will earn Rs 20 crore a year to the State exchequer, Raturi said.

LPG distributors across Uttarakhand have implemented the decision with immediate effect, she said.

(This article was published on February 7, 2013)
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