Monday, December 28th, 2015

LPG Subsidies Removed for Those with Annual Income of Over 10 lakh

Narada Desk | December 28, 2015 8:49 pm Print

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The Union government has today decided to cut the LPG subsidies to people having an annual income of over Rs 10 lakhs. Such tax payers will not get the benefit of subsidy from next year onwards.  As of now, all the households are entitled to an LPG subsidy of Rs 419 instead of the market price Rs 608, for 12 cylinders of 14.2 kg each.

“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,” the Petroleum ministry said while addressing various media organizations.

Prime Minister Narendra Modi had earlier this year appealed to the people to give up their subsidies voluntarily so that the amount could be used for providing subsidized fuel  to those in need. The new law shall be applicable to the consumers whose spouses had a taxable income of Rs 10 lakh during the previous financial year.

“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,” the ministry sources said.

So far, over 57.5 lakh LPG consumers, out of nearly 15 crore customers, have given up subsidies. However, at present there are no estimates of how many LPG customers may have a taxable income of Rs 10 lakh or more.

 

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