Kerala Budget 2021 proposes reduction of VAT on CNG/LNG

Kerala Budget 2021 proposes reduction of VAT on CNG/LNG

Kerala Budget 2021 - reduction of VAT - CNG LNG - CNG - Taxscan

In a Kerala Budget 2021 presented by Kerala Finance Minister Thomas has proposed to reduce the Value Added Tax ( VAT ) on CNG/LNG to 5%. The present VAT on CNG/LNG is 14.5%.

The Finance Minister said that It is understood that this high tax rate is an impediment for attracting new investments and for the development of public sector undertakings like FACT and BPCL. Hence the tax rate of LNG/CNG will be reduced to 5% at par with Tamil Nadu.

The tax concession will be beneficial to the City Gas projects and domestic consumers. A revenue loss of Rs. 166 Cr. is expected.

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