The Uttar Pradesh Government, on Tuesday proposed to reduce the rate of Value Added Tax (VAT) on Compressed Natural Gas (CNG) to five per cent. The current rate applicable to CNG in the State is ten per cent.
Earlier, States like Delhi and Gujarat reduced the tax rate applicable to compressed natural gas.
The decision will be a major relief to a host of industries dependent on compressed natural gas (CNG). Some industries including glass, ceramics, chemicals and textiles, among others, Ceramic industries, which are heavily dependent on CNG for their production units will also be benefitted.
