Maharashtra govt slashes VAT on CNG from 13.5% to 3%

The huge reduction in CNG rates will benefit the common man travelling in taxis, auto-rickshaws that use CNG as a fuel.

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CNG Pipeline fitting (Express photo by Jaipal Singh)

Compressed Natural Gas (CNG) in Maharashtra will become cheaper with the state government Saturday taking a decision to reduce the Value Added Tax (VAT) from 13.5 per cent to three per cent from April 1.

The decision was taken by Deputy Chief Minister and Finance Minister Ajit Pawar. The huge reduction in CNG rates will benefit the common man travelling in taxis and auto-rickshaws that use CNG as a fuel.

The government’s emphasis to bring down CNG prices is also oriented towards promoting greater use of transports that are environment-friendly. CNG is perceived as more environmentally-friendly as compared to diesel and petrol.

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During the two-week-long Budget session, Pawar had announced that the government would initiate measures to bring down CNG prices. Accordingly, on the last day of the Budget session Friday, the minister directed the Finance department to initiate the process and issue notifications to that effect.

Pawar said, “The state government has always strived towards extending relief to the common man. The VAT reduction in CNG is a step in that direction. It will help lakhs and lakhs of people who rely on auto-rickshaws and taxis to commute daily.”

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