Shillong, April 1: The state government has decided to lower Value Added Tax on compressed natural gas (CNG) from 14.5% to 5% in order to attract investment in the energy sector.
The decision is in line with other states of the country.
Announcing this after a cabinet meeting on Wednesday, Chief Minister Conrad K Sangma said.
“We have reduced our VAT rate on methane gas as compressed natural gas (CNG) from 14.5% to 5% in line with what other states are doing,” he said.
“This is also being done of course to create a competitive environment that will be able to attract different agencies to come up and set up their base out here,” he added.
Asked whether the cut was connected to the current situation related to LPG supply, Sangma clarified: “Yes, this is CNG basically.”
