The Hindu : Kerala News : LPG distributors to join strike

Online edition of India's National Newspaper
Saturday, Apr 02, 2005

Kerala

Kerala

LPG distributors to join strike

By Our Staff Reporter

THIRUVANANTHAPURAM, APRIL 1. The Kerala unit will join the countrywide strike called by the All India LPG Distributors' Federation from April 15 demanding withdrawal of VAT on LPG.

This was announced here today by the secretary of the Kerala circle of the federation, Sangeeth Kumar.

He said the federation was against the inclusion of LPG under VAT.

A heavily subsidised product like LPG that was being sold to domestic consumers was taxed at first point by the public sector oil companies and 8 per cent by Sales Tax authorities which has now been increased to 12.5 per cent under VAT system.

This would jack up the price of LPG cylinders by Rs.10 to Rs.12 from today.

In spite of Central subsidy, public sector oil companies were subsidising the cylinder to the tune of almost Rs.112 a cylinder.

As CNG had been exempted from VAT, there was no justification in including LPG under VAT regime.

He said LPG distributors hwere already suffering loss of sale owing to the availability of piped natural gas (CNG) in metropolitan cities such as Delhi and Mumbai.

As CNG was cheaper, and not included in VAT, LPG distributors would suffer more losses with the inclusion of LPG under VAT.

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