No LPG subsidy for person earning more than 10 lakh per annum
Updated: Dec 29, 2015 11:23:00am
New Delhi, Dec 29 (KNN) The Central Government has announced not to provide subsidised gas cylinder to the taxpayers with an annual income of more than Rs 10 lakh per year. It is a step towards curbing the supply of subsidised cooking gas.
At present, all households are entitled to 12 cylinders of 14.2-kg each at subsidised rate of Rs 419.26, while the market price of each cylinder is Rs 608. In the assessment year 2014-15, a total of 20.26 lakh assesses were reported as having a taxable income above Rs 10 lakh, according to the Central Board of Direct Taxes data.
Justifying the latest move, a statement issued by the Union Petroleum Ministry said “the government has decided that the benefit of the LPG subsidy will not be available for LPG consumers if the consumer or his/her spouse had taxable income of more than Rs 10 lakh during the previous financial year computed as per the Income Tax Act, 1961.”
This would, however, be done initially on “self-declaration basis while booking cylinders from January 2016 onwards”, the statement added.
On March this year, the Government had asked to people who are earning well to voluntarily give up their LPG subsidy. So far, of the estimated 14.78 crore LPG consumers in the country, over 52 lakh are reported to have given up access to subsidised fuel voluntarily.
“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 statement said.
In September 2012, the UPA government had regulated the number of subsidised domestic cylinders per household on an annual basis to six, and later revised it to nine. The cap was subsequently revised in January 2014 to 12 cylinders a year, starting April 1. (KNN Bureau)
At present, all households are entitled to 12 cylinders of 14.2-kg each at subsidised rate of Rs 419.26, while the market price of each cylinder is Rs 608. In the assessment year 2014-15, a total of 20.26 lakh assesses were reported as having a taxable income above Rs 10 lakh, according to the Central Board of Direct Taxes data.
Justifying the latest move, a statement issued by the Union Petroleum Ministry said “the government has decided that the benefit of the LPG subsidy will not be available for LPG consumers if the consumer or his/her spouse had taxable income of more than Rs 10 lakh during the previous financial year computed as per the Income Tax Act, 1961.”
This would, however, be done initially on “self-declaration basis while booking cylinders from January 2016 onwards”, the statement added.
On March this year, the Government had asked to people who are earning well to voluntarily give up their LPG subsidy. So far, of the estimated 14.78 crore LPG consumers in the country, over 52 lakh are reported to have given up access to subsidised fuel voluntarily.
“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 statement said.
In September 2012, the UPA government had regulated the number of subsidised domestic cylinders per household on an annual basis to six, and later revised it to nine. The cap was subsequently revised in January 2014 to 12 cylinders a year, starting April 1. (KNN Bureau)
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