Green move: VAT on natural gas cut by 11%
With an aim to encourage industries to shift to eco-friendly resources, the Punjab Cabinet decided to cut down VAT on natural gas, in gaseous state other than compressed natural gas (CNG), by 11 per cent i.e. from 14.3 per cent to 3.3 per cent. Chief Minister Capt Amarinder Singh saidthe move would help in reducing industrial pollution in the state.
At present, the VAT rate on natural gas is 13 per cent plus 10 per cent surcharge i.e. 14.30 per cent in Punjab. The major consumer of gas is National Fertilisers 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 i.e. 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. The other decisions approved during the Cabinet meeting are as follows: