Tax payers with annual income of more than Rs. 10 lakh will not get subsidised cooking gas (LPG) from next month.
The government on Monday decided to limit supply of under-priced fuel to cut subsidies.
At present, all households are entitled to get 12 cylinders of 14.2-kg each at subsidised rate of Rs. 419.26, while the market price is Rs. 608.
The government had asked well-off people to voluntarily give up using subsidised LPG and instead buy cooking fuel at market price, Oil Ministry said in a statement.
So far, over 57.5 lakh LPG consumers, out of nearly 15 crore customers, have given up subsidies.
“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,” the statement said.
The government, it said, “has decided that the benefit of the LPG subsidy will not be available for LPG 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.”
This would, however, be done initially on “self-declaration basis while booking cylinders from January 2016 onwards.”