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The CNG price will see an increase of Rs 1.77 from Rs 35.45 per kg, which may trigger demand for hike in bus, taxi and auto fares

VAT on petrol slashed in Delhi budget

29-May-2012, 09:29

Petrol will be now cheaper by Rs 1.26 and will now cost Rs 71.92 a litre in Delhi after the cut in VAT, which had risen to Rs 73.18 after last week's hike. On the other hand, the CNG price will see an increase of Rs 1.77 from Rs 35.45 per kg, which may trigger demand for hike in bus, taxi and auto fares besides having an impact on transportation cost of goods as the Delhi budget slashed VAT on the hiked price of petrol but slapped it on transport fuel CNG.

Beedis, unmanufactured tobacco, sarees, plastic cups and glasses would become costlier with hike in levies on them. Meanwhile, hairpins, hairclips, safety pins, saree falls, kirpans, sacred threads, tricycles geometry boxes, crayons and pencil sharpeners will be cheaper with the budget removing or reducing VAT on them.

The prices of UPS used for computers will go up as VAT on them has been hiked from 5% to 12.5%.

The Rs 33436 crore budget, presented in the Delhi assembly by Chief Minister, Sheila Dikshit, has its dose of populist measures with announcement of a number of social welfare schemes, which are aimed at winning back support of voters ahead of next year's assembly polls.

Other articles which get VAT exemption or slashing of rates include blood filters. Reaching out to 2 lakh vulnerable households, Dikshit also announced a cash food subsidy of Rs 600 per month to the senior most female member of the family under a new programme titled Dilli Annashree scheme.

Putting maximum focus on social sector schemes, government allocated a massive Rs 9796 crore to such programmes out of the total plan outlay of Rs 15000 crore.