Monday, December 28th, 2015

Curb on gas subsidies for those earning Rs 10 lakh and more

Narada Desk | December 28, 2015 7:49 pm Print

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Delhi: The government on Monday repelled the benefit of the subsidy on gas cylinders. The announcement was for the target group of gas consumers with taxable income of more than Rs. 10 lakh per annum.

The petroleum ministry in a statement to the press, noted that the directive would be effected “initially on a self-declaration basis” and will be put to action from 2016. Consumers are currently entitled to 12 cylinders at cheaper rates in a year. For more, they have to pay the market price.

“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,” noted the ministry.

Officials said that the┬ásubsidy saved from the ‘GiveitUp’ campaign went into giving connections to poor families who are still dependent on kerosene, coal, fuel wood or cow dung. As per reports, of the 16.35 crore cooking gas cylinder consumers in the country, 57.5 lakh have given up their subsidy.

The statement from the ministry noted that the government has decided that the benefit of the LPG subsidy will not be available for consumers if the consumer or his/her spouse had taxable income of more than Rs.10,00,000 during the previous financial year computed as per the Income Tax Act, 1961.

Prime Minister Narendra Modi also noted in his radio show ‘Mann Ki Baat’ that with the implementation of the Pahal initiative for paying consumers cooking gas subsidy directly into the bank accounts of 14.78 crore consumers up to end-November, it has become the world’s largest direct benefit transfer scheme.

 

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