Ahmedabad: The BJP government in Gujarat has cut VAT on CNG and PNG by 10 per cent ahead of Diwali. Along with this, 38 lakh beneficiaries of the Ujjwala scheme have been announced to give two cylinders free of cost per year. The government has taken this step to give relief to the general public during the festive season. In the Ujjwala scheme, people from poor sections are given free cylinder connections.

Reduction in VAT on compressed natural gas (CNG), piped natural gas (PNG) and two free liquefied petroleum gas (LPG) cylinders per year to the beneficiaries of the central government's Ujjwala scheme, There will be an additional burden of Rs 1,650 crore on the Gujarat government. This announcement has been made by the state government at a time when the assembly elections are going to be held in Gujarat in some time. Gujarat Minister Jitu Vaghani has said that 'The government has reduced VAT on CNG and PNG by ten per cent. This will help housewives women, auto-rickshaw drivers and those who use CNG vehicles.'

Let us tell you that in recent times, there has been a big increase in the rates of CNG and PNG. Once the gas sold for Rs 30-40 per kg has reached more than Rs 75 today. There is not a huge difference in the price of petrol and CNG-PNG. According to industry sources, the VAT on CNG and PNG used in cooking in Gujarat was 15 per cent. After this reduction, the tax rate will now come down to 5 percent. This reduction will give some relief to the customers, as the price will also be lower due to the reduction in the tax of government. Due to high government tax on the price of oil, LPG and CNG-PNG, there is a huge increase in the price. Accordingly, reducing VAT will give some relief to the people.

These Banks hike MCLRs, repo-linked lending rates

RBI: Fight against inflation will be dogged, prolonged

Crude oil price hike to weaken Indian Oil Cos if net realisation doesn’t go up: Moody’s