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Gujarat govt big gift to state before Diwali, 10 percent reduction in VAT on 2 free LPG cylinders, CNG, PNG

The Gujarat government on Monday (October 17) has announced to give two cylinders free of cost to the beneficiaries of PM Ujjwala scheme. Apart from this, the government has also made CNG vehicle owners happy. The government has cut VAT on CNG and PNG by 10 percent.

By Priyanka Verma 
Updated Date

Gujarat: Gujarat government has given a big gift to the public before Diwali and assembly elections. The state government on Monday (October 17) has announced to give two cylinders free of cost to the beneficiaries of PM Ujjwala scheme. Apart from this, the government has also made CNG vehicle owners happy. The government has cut VAT on CNG and PNG by 10 percent.

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Now, by reducing VAT on CNG, consumers will benefit from Rs 6 to 7 per kg, while in PNG consumers will benefit from Rs 5 to 6 per kg. By giving relief in CNG and PNG, there will be a burden of 300 crores on the government.

About 14 lakh CNG vehicle owners will benefit from the move to reduce VAT on CNG. This is a matter of relief for the common man as the reduction in prices will reduce the burden on their pockets. While they will be able to save around Rs 1600 for two LPG cylinders, they will save around Rs 60 to 150 per month on LPG and CNG consumption.

LPG prices are around Rs 1050 across India. The beneficiaries of the Ujjwala scheme get a rebate of Rs 200 through Direct Benefit Transfer (DBT). According to the state government, the reduction in VAT will put an additional burden of Rs 1,650 crore on the government. Jitu Vaghani, state education minister and spokesperson of the Gujarat government, described it as a Diwali gift for the citizens.

Vaghani said a grant of around Rs 650 crore would be used to provide two free LPG cylinders and the money for these cylinders would be directly deposited into the accounts of the beneficiaries.

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