Union Government links LPG subsidy to income

Union Government has announced to link LPG subsidy to income of consumers in order to ensure that the subsidy benefits go to the targeted group.
Henceforth, the LPG subsidy will not be available to LPG consumers if the consumer or his/her spouse has taxable income of more than ten lakh rupees. This income would be as per the previous financial year computed under Income Tax Act, 1961.
This decision will be given effect to initially on self-declaration basis of LPG consumers while booking cylinders January 2016.
This move will affect at least 60 lakh LPG consumers of the total 16.5 crore LPG consumers in the country and Government will save upto Rs. 113 crore from this decision.
Background
Earlier under the ‘Give it Up’ campaign many LPG consumers had given up their subsidy voluntarily but Government felt that consumers in the higher income bracket should get LPG cylinders at the market price. So far, 57.50 lakh LPG consumers have opted out of LPG subsidy voluntarily under the campaign that aims to ensure that the subsidy benefits go to the targeted group.

Month: Current Affairs - December, 2015