PIONEER NEWS SERVICE | Dehradun
The Uttarakhand government has reduced Value Added Tax (VAT) on natural gas (Piped Natural Gas and Compressed Natural Gas). The Finance secretary Dilip Jawalkar said that at present 20 per cent VAT is levied on the PNG and CNG in the State. He said that the State government will now levy a VAT of five percent on PNG and 10 per cent on the CNG.
The secretary said that the VAT on natural gas in neighbouring Uttar Pradesh and Himachal Pradesh was less than Uttarakhand due to which the vehicle owners preferred to purchase CNG and PNG from there. This was causing revenue loss to the State.
Natural gas is considered a better fuel due to it being environment friendly. The decision of the Uttarakhand government to reduce VAT on CNG and PNG will also help in setting up pollution free industrial units in the State.
