The central government has enforced a new norm on LPG subsidy as the government has now debarred LPG users those who earn above Rs. 10 lakh annually from receiving subsidy. This will be applicable from users’ next refill.
- People who are earning above Rs. 10 lakhs per annum are not eligible to receive subsidy and it has been advised that taxpayers will have to inform LPG distributors if their income is above Rs. 10 lakhs. LPG distributors have already started to inform taxpayers via SMS.
- Over the course of last week, thousands of taxpayers have received SMS from distributors with the message clearly mentioning their income status and their ineligibility in availing subsidy.
- The Income Tax Department has already identified more than 3 lakh people with an income of more than Rs. 10 lakh and informed them that their subsidies will be removed. The central government already back in December, 2015 imposed Rs. 10 lakh to be the cut-off annual income for availing LPG subsidy but now has urged people to ‘Give it up’ voluntarily. According to a statistic from the Ministry of Petroleum and Natural Gas, around 85.24 lakh people have voluntarily given up their LPG subsidies. The statistic also shows that the government has been able to save Rs. 965 crore from voluntary give-up of subsidy.
(Source: The Hindu) Ministry of Petroleum and Natural Gas