Gujarat govt cuts VAT on CNG & PNG, to give 2 cylinders free to Ujjwala beneficiaries

Ahead of Diwali, the Gujarat government on Monday announced a reduction in VAT (Value Added Tax) on CNG and PNG by 10 per cent and said two cooking gas cylinders will be given free every year to 38 lakh beneficiaries who have got gas connections under the Centre’s Ujjwala scheme.

The reduction in VAT on CNG (compressed natural gas), PNG (piped natural gas) and two free liquefied petroleum gas (LPG) cylinders to Ujjwala scheme beneficiaries every year, which will cost the state exchequer altogether Rs 1,650 crore, come at a time when Assembly polls are just a few month away in Gujarat.

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“Around 38 lakh families have been given LPG connections under the Ujjwala scheme. The state government has decided to provide two gas cylinders to each of these families per year. This will cost the government Rs 650 crore per year,” he said.“This LPG subsidy will reach the account of the beneficiary within three days of purchase of cylinder,” he said.