Punjab to reduce tax on natural gas to promote eco-friendly fuels

SULTANPUR LODHI: In a bid to curb the dependency on fossil fuels, the Punjab cabinet has decided to trim down the Value Added Tax (VAT) levied on natural gas, other than Compressed Natural Gas (CNG), from 14.3 per cent to 11 per cent, marking a depreciation of 3.3 per cent,

Captain Amarinder Singh, Chief Minister, Punjab, said that the move would help in reducing industrial pollution in the state. Currently, the VAT levied on natural gas in the state is 13 per cent plus 10 per cent surcharge that is 14.30 per cent. The major consumer of gas is National Fertilizers Limited (NFL), which uses it in its plants at Bathinda and Nangal. Natural gas is also consumed in very small quantity by select industries and the transport sector. The VAT collection on natural gas from 2014-15 to 2018-19 came down considerably from Rs 105.77 crore to Rs 5.67 crore, which had further shown a steep decline to Rs 1.84 crore till June 2019, during 2019-20.