Presenting the budget on Monday, Dikshit announced to levy five per cent VAT on CNG which will push the price of the from Rs35.45 per kg to 37.20 per kg.
Delhi Government's decision to levy 5% 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 on Monday, Dikshit announced to levy five per cent VAT on CNG which will push the price of the from Rs35.45 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When asked whether VAT on CNG will be withdrawn, Dikshit only said "discussion on budget was still on and the budget was not yet passed."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.
In her budget speech, Dikshit had slashed VAT on the hiked price of petrol making it cheaper in the city by Rs1.26 but imposed the VAT on CNG to generate around Rs110 crore in revenue.
Congress MLAs argued that any hike in CNG prices may fuel rise in price of essential commodities as some goods trucks also use CNG as fuel.
They said the party suffered a huge electoral drubbing in the MCD polls and the government should avoid taking decisions which hit the common man.
"I met the Chief Minister and demanded withdrawal of the VAT on CNG. I feel it is unjustified," said Kasturba Nagar MLA Neeraj Bisoya.
Demanding immediate rollback of VAT on CNG, the BJP held a walkout in the assembly.
"The government must withdraw the hike. We will not relent until government reviews its decision," said leader of opposition V K Malhotra.
BJP has called for 'Delhi bandh' on Thursday to protest against spiralling price rise, including of petrol and introduction of VAT on CNG by Delhi government.
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