States do not levy 55% tax on domestic LPG, AltNews checks popular FB post
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The chart circulating on social media claiming that the central government taxes Rs 24.75 per LPG cylinder while state governments add a tax of Rs 291.36 is false, reports fact-checking website AltNews. As per the chart, the price break-up includes a dealers' commission of Rs 5.50. The claim, most viral on Facebook and Twitter, concludes, "Central Govt. Tax 5%, State Govt. Tax 55% so Please find which Government is guilty of hiking the cooking gas price."
The post has come forth in light of the fuel price hike across the country. Petrol, diesel and domestic LPG prices have soared. While a 14.2 kg LPG cylinder cost Rs 594 in Delhi as of July 1, it now costs around Rs 834.5.
In reality, only GST is applied to domestic LPG. 5% Goods and Services Tax is levied on domestic LPG cylinders. This is split equally between the state and the centre. The dealers' commission, fixed by the petroleum ministry per 14.2kh cylinder, is Rs 61.84. Furthermore, the government has not provided subsidies for LPG since last year.
"The claim has been promoted in support of the Modi government under criticism for rising domestic LPG prices," the report notes.