Narendra Modi government on Monday announced that consumers with taxable income of more than Rs 10 lakh will not be eligible for subsidized LPG.
Currently consumers are entitled to 12 cylinders at cheaper rate of Rs 419.26 per year, and for more, they have to pay the market price, which is Rs 608. So from the next year consumers falling under Rs 10 Lakh taxable income category will have to pay the market price for all the cylinders from January 2016.
However, it would be initially implemented on a self-declaration basis, according to a statement issued by the petroleum and natural gas ministry. The government felt that it is only right for people with higher income bracket to buy cylinders at market price.
As a part of the 'GiveitUp' campaign, 57 lakh of the over 16 crore LPG consumers in India have voluntarily given up their subsidy, official statistics say.
The subsidy saved up from the campaign would be used to provide connections to the poor families, said Modi during his visit to Bengaluru earlier this year.