Cooking gas consumers with taxable income of more than Rs 10 lakh per annum will no longer get benefit of the subsidy on gas cylinders. The announcement was made by the government on Monday.
To be applicable from the New Year, the directive would be effected “initially on a self-declaration basis”, a petroleum ministry statement said.
While many consumers have given up subsidy voluntarily, it is felt that consumers in the higher income bracket should get LPG cylinders at the market price.
Statement by Petroleum Ministry
The statement added, “The government has decided that the benefit of LPG subsidy will not be available for consumers if the consumer or his/her spouse had taxable income of more than Rs 10 lakh during the previous financial year computed as per the Income Tax Act, 1961”.
Of the 16.35 crore cooking gas cylinder consumers in the country, 57.5 lakh have voluntarily given up their subsidy, “heeding the call given by the Prime Minister,” the government said.
The government’s Pahal initiative has become the world’s largest direct benefit transfer scheme, claimed by Prime Minister Narendra Modi in his Mann Ki Baat radio address on Sunday.