Assam government has withdrawn the partial subsidy of Rs 14 on domestic LPG cylinders and hiked the price of petrol by 76 paise per litre and diesel by Rs 1.67 a litre.
The state government has also increased VAT to 6 per cent from 5 per cent on 127 household goods with immediate effect.
According to a Gazette notification, the government withdrew “the partial exemption granted to the oil companies on sale of Liquefied Petroleum Gas (LPG) for domestic use within Assam” with immediate effect.
When contacted, Assam Commissioner and Secretary (Finance) Ravi Kota told PTI that the withdrawal of the subsidy will result in increase in prices of LPG cylinders by Rs 14 each.
This decision was taken at the last Cabinet meeting and has come into effect from yesterday, he added.
“…the price of petrol will increase by 76 paise and diesel by Rs 1.67 per litre,” Kota explained.
The government has also increased VAT on 127 items under Second Schedule to 6 per cent from 5 per cent earlier.
The Second Schedule items include most of the day-to-day household goods such as agricultural implements, all types of yarns, all kitchen utensils, bamboo items, all types of cycles and their parts, bulk drugs, coffee beans and seeds, coir products, edible oils, paper, plastic footwear, printed material, readymade garments and renewable energy devices.
Some other important items, whose prices will go up due to the new tax structure, include skimmed milk powder, all spices, tractors, vanaspati, vegetable oil, embroidery or zari articles, processed meat, poultry, fish, processed or preserved vegetables and fruits, gold items, glass bangles, hand made soap, pure ghee, sweets, baby feeding bottles and nipples, dry fruits, soya nuggets, jute and jute products.
Prices of medical diagnostic kits, x-ray films and other diagnostic films, medical equipments, devices and implants, spectacles, spare parts of motor vehicles, medicines, honey, glucose, sugar and CFL bulb have also been raised by revising the VAT rates northward.
The Assam government has also raised the fixed tax component by Rs 3,000 to Rs 6,000 on pre-owned cars with the engine capacity of up to 1,000 cc.
The prices of cigarettes, bidis and other smoking tobacco products will go up after the government changed the tax specifications through a latest gazette notification.
Accordingly, it will be Rs 1,600 per 1,000 sticks for filter cigarettes of more than 75 mm length, while it has been fixed at Rs 1,225 for more than 70 mm but less than 75 mm of length.
It will be Rs 810 for cigarettes having length between 65 mm and 70 mm, while it will be Rs 550 for all those falling between 60 mm and 65 mm length.
“Cigarettes not falling in any of the above” will be charged Rs 1,600 of tax per 1,000 sticks.
Cheroots, bidis, cigars and smoking mixtures will be taxed at Rs 30, while it will be Rs 20 for all other tobacco and tobacco products, the notification said.