New Delhi: Delhi Government`s decision to levy five per cent VAT on CNG, the fuel used for public transport, on Tuesday saw demands from within ruling Congress for its immediate withdrawal on the ground that any resultant hike in auto and taxi fares will hit the common man.
A number of MLAs met Chief Minister Sheila Dikshit and sought roll back of VAT on the CNG arguing that any increase in price of the fuel will have a negative effect on the party which suffered a crushing defeat in the municipal polls last month.
Presenting the budget yesterday, Dikshit announced to levy five per cent VAT on CNG which will push the price of the from Rs 35.45 per kg to 37.20 per kg.
"The hike in CNG price will lead to hike in auto and bus fares which would put additional burden on the common man already reeling under rising prices of food items. We have requsted the Chief Minister to withdraw the VAT on CNG," senior MLA Naseeb Singh said.
Senior MLAs Matin Ahmed and Barkha Singh also voiced their concern over levying of VAT on CNG and said government should heed to demand for rollback of the tax on the fuel.
"It should be rolled back immediately as the hike will impact general public who travels on auto, bus and taxi," said Matin.
Congress MP from West Delhi Mahabal Mishra was also critical of the decision and demanded immediate withdrawal of the VAT. Mishra met Dikshit and told her that the decision will adversely affect the party.
When asked whether VAT on CNG will be withdrawn, Dikshit only said "discussion on budget was still on and the budget was not yet passed."
Sources said as many as 15 MLAs have demanded rollback of VAT on CNG.