1. Govt may do away with LPG subsidy for rich, says FM Arun Jaitley

Govt may do away with LPG subsidy for rich, says FM Arun Jaitley

Currently, 12 cylinders are available to consumers at a subsidised rate of Rs 414 each (in Delhi); any requirement beyond this will have to be purchased at Rs 880.

By: | New Delhi | Published: November 21, 2014 5:15 PM
"The next important decision India will have to take is whether people like me... (are) entitled to get LPG subsidy," says FM Arun Jaitley. (PTI)

“The next important decision India will have to take is whether people like me… (are) entitled to get LPG subsidy,” says FM Arun Jaitley. (PTI)

The government is considering doing away with the LPG subsidy for the well-off, Finance Minister Arun Jaitley said today.

“The next important decision India will have to take is whether people like me… (are) entitled to get LPG subsidy,” he said at an event here.

“I think the sooner we are able to take these decisions as to who is entitled to these subsidies, of course some people would be, the better it would be for our system. These decisions are all on our agenda,” he added.

Currently, 12 cylinders are available to consumers at a subsidised rate of Rs 414 each (in Delhi). Any requirement beyond this will have to be purchased at the market price of Rs 880 per 14.2-kg cylinder.

At the HT Leadership Summit, Jaitley said: “Once political leadership, particularly the man on the top, has decisiveness, the most complicated of the decisions will also become simple. One does not have to wait for years to decide on coal blocks or what to do with spectrum or natural resources, or with diesel pricing or with gas pricing.”

Some of these decisions had been complicated over the years, but the new government wasted no time and simply took a call on them he said, adding that “I think that’s the agenda we continue to follow”.

Jaitley further said that India is at a crucial stage “where we must not exhaust our patience” as global investors are looking at the country with renewed interest. After coming to power, the Narendra Modi-led government deregulated diesel prices and linked them to the market rate.

Earlier, the government used to provide subsidy on diesel. Jaitley said he was “almost ready” with the proposal on the Goods and Services Tax and was confident that the Constitution Amendment Bill on it would be introduced in the next Parliament session starting Monday.

Referring to long-pending insurance bill, he said “we are on the verge” of opening the sector a little more. The Bill proposes to increase foreign direct investment limit in the insurance sector to 49 per cent from the current 26 per cent.

  1. R
    RDayal
    Nov 22, 2014 at 11:17 pm
    Will it be in accordance with ITax returns that the cl of society will be judged. Those paying revenue honestly will have to pay more . Or is there some other yardstick that will not discourage citizens from revealing their income.
    Reply
    1. T
      Truth hurts
      Nov 22, 2014 at 4:39 pm
      Also please charge ₹200 per litre diesel / petrol for all cars above 800 CC. Why should it be equal price for a moped / Innova ?
      Reply
      1. H
        h m
        Nov 22, 2014 at 10:26 am
        LPG subsidy for rich may go? what does they mean rich? is this means only those honest persons or employees only, who r paying income tax. What about those who r not paying taxes. This is another example of MISMANAGEMENT in our country.
        Reply
        1. T
          t p
          Nov 22, 2014 at 7:01 pm
          subsidy means corruptiion for political gains or income for political workers/agents. Make peoples developed enough to earn rather than begging & becoming burden on the earners.No subsidy should exceed 10%. tax rate be moderated minimum 1% to maxi 10 % and every citizen should be dutybound to pay tax at least 1% .
          Reply

          Go to Top