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Sales tax on CNG withdrawn

By Our Staff Reporter

NEW DELHI APRIL 12. Reducing some of the burden which would have been imposed of the already harassed commuters, the Delhi Finance Minister, Mahinder Singh Saathi, today announced withdrawal of the four per cent Sales Tax on CNG fuel following pressure from various sections including transporters and environmentalists. He also announced withdrawal of tax on oil cakes in order to provide relief to dairy farming.

Replying to the three-day debate in the Delhi Assembly on the Finance Bill 2002-03, which was later passed by the House, Mr. Saathi said a number of MLAs and some other sections had requested withdrawal of Sales Tax on CNG. In order to mitigate the problems faced by transporters in the wake of the present CNG crisis, the Government had come to the conclusion that deferment of tax on CNG will further show the commitment of this Government to sharing the burden of the consumers who are facing hardships. The four per cent tax had sought to raise the price of CNG by a meagre 50 paise.

At the same time, Mr. Saathi, taking a swipe at the Opposition, said the BJP should impress upon its Central Government to withdraw the increased Excise Duty on CNG which had made CNG dearer by 90 paise. Further, Mr. Saathi said several requests had been received to exempt oil cake on line with the proposed exemption on de-oiled cake, to help farmer especially, who are engaged in dairy and milk production.

Giving clarification regarding the newly imposed tax on foodgrains, cereals and pulses and the definition of word "packed'', the Finance Minister said the Government only proposes to tax the consumers packs and not the foodgrains sold in gunny bags in wholesale market. Thus, only those foodgrains, cereals and pulses that are branded and packed in consumer packs of 20 kg or below would be taxed and remaining will be exempted.

Mr. Saathi also announced that in order to provide relief to the small trader and manufacturer, the limit for mandatory registration was being raised from Rs. 3 lakhs to Rs. 4 lakhs in case of dealers and from Rs. 1.5 lakhs to Rs. 2 lakhs in case of manufacturers.

Lashing out at the Leader of the Opposition, Jagdish Mukhi, for misleading the people of Delhi by giving wrong information and figures, Mr. Saathi said all the data and facts listed out by Mr. Mukhi during his speech were baseless. He said the criticism by Mr. Mukhi with regard to privatisation of Delhi Jal Board and Delhi Vidyut Board was a laughable matter. The Opposition at times has criticised us and suggested that losses of these undertakings should be checked. But when the Government is undertaking a genuine effort to restructure these undertakings, Mr. Mukhi is criticising it. It is very difficult to read the frame of mind of the Leader of the Opposition who had conveniently ignored facts and has indulged in jugglery of figures to suit himself.

He said Mr. Mukhi had been shaken so much by the party's defeat in the MCD polls that he did not have time to read the budgetary proposals thoroughly. His reference to increase in Non- Plan expenditure was incorrect as also the allegation that the budget was anti-weaker sections. A number of schemes had been initiated for the upliftment of the weaker sections, handicapped and senior citizens, a fact which has been ignored by Mr. Mukhi.

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