Guwahati: The honeymoon of people of Assam with the new BJP-led government is virtually over with the decision of the new government to increase rate of VAT in 127 household items and prices of LPG cylinders, Petrol and Diesel has triggered statewide protests. The BJP and its allies which have come to power with an overwhelming mandate after promising to trigger all round development in the state, in
their first cabinet meeting decided to increase VAT by one per cent to 6% on 127 household goods, withdraw partial subsidy on LPG cylinders and hike prices of petrol and diesel with immediate effect.
The move has triggered protests all over the state by various organizations including the All Assam Students’ Union (AASU), Asom Jatiyatabadi Yuba Chatra Parishad (AJYCP), All India Students Federation (AISF) even as opposition Congress lambasted the new government saying it had brought about the much promised change in the form of steep hike in prices.
Former chief minister and Congress leader Tarun Gogoi said, “The increase in VAT and hike in prices of LPG cylinders, petrol and diesel will hit the common man hard even as they were looking for positive changes as promised by the BJP before the recent Assembly election.”
Chief minister Sarbananda Sonowal, however, defended the decision to hike prices saying that the precarious financial condition of the state compelled the government to increase VAT on household goods and prices of LPG, petrol and diesel. He said the prices of essentials had not been touched. “The resources that will be generated due to increase in VAT will be spent only for the welfare of the state and its people. Others states in the country have already increased the rate of VAT.”
According to a notification published in Assam government gazette, the state government withdrew the partial exemption (Rs 14 per cylinder) granted to the oil companies ob sale of LPG for domestic use within Assam.
State’s Commissioner and Secretary of Finance, Ravi Kota said because of the decision taken by the state Cabinet, the prices of petrol would increase by 76 paise per litre and diesel by Rs 1.67 per litre.
The VAT has been increased on 127household items like agriculture implements, yarns, kitchen utensils, bamboo items, cycles, bulk drugs, coffee beans and seeds, coir items, edible oils, paper, plastic footwear, printed materials, readymade garments and renewable energy devices.
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