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Rich people in India will no longer get a subsidy for cooking gas (LPG) from 2016 onwards.
In a decision to restrict subsidy only to those who need it, the Ministry of Petroleum and Natural Gas on Monday announced that from January 2016, the benefit of subsidised LPG will not be given to a consumer whose annual taxable income is more than ₹ 10 lakh in the previous financial year.
The subsidy will also not be given if the consumer’s spouse has an annual taxable income of more than ₹ 10 lakh.
To being with the withdrawal of the subsidy will on a self-declaration basis wherein those in the highest income bracket will mention this at the time of the booking from January 2016 onwards.
While it is not known how many LPG customers fall in the highest income bracket, data from a parliamentary committee shows that in 2011-12, there were 20 lakh taxpayers in the highest income tax bracket. A Petroleum & Natural Gas Ministry official declined to comment on the projected savings from the withdrawal of the subsidy for such category of consumers.
Currently, a subsidised 14.2 kg LPG cylinder is available at ₹ 419.26 in New Delhi while a non-subsidised cylinder will cost ₹ 608.
“With the implementation of the PAHAL Scheme (Direct Benefit Transfer of LPG), the subsidy is being transferred directly to the bank accounts of 14.78 crore LPG consumers. The objective of the scheme was to ensure that the subsidy benefits go to the targeted group,” an official statement said.
“While many consumers have given up subsidy voluntarily, it is felt that consumers in the higher income bracket should get LPG cylinders at the market price,” an official statement added.
According to data available on the Ministry of Petroleum & Natural Gas’ website, a total of ₹ 24,431 crore of subsidy has been transferred to consumers’ bank accounts till date.
The Prime Minister Narendra Modi had launched a ‘GiveitUp’ campaign earlier in the year asking those who can afford it to voluntarily give up LPG subsidy. So far, 57.50 lakh LPG customers have opted out the DBTL and voluntarily given up LPG subsidy. The Petroleum & Natural Gas Ministry said that the savings are being used to provide new connections to the below poverty line families under ‘Giveback’ campaign.
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