Chandigarh Slashes VAT on CNG and PNG

The Union Territory of Chandigarh has reduced the Value Added Tax (VAT) on natural gas, providing significant tax relief to consumers using Compressed Natural Gas (CNG) and Piped Natural Gas (PNG). The VAT rate was slashed from 12.5% to 5%, a move that is expected to reduce the cost of CNG and PNG for commuters and households.

The decision comes into effect from midnight on September 18, and it is hoped that this will encourage the development and expansion of natural gas infrastructure in the city.

According to an official statement, consumers using CNG and PNG in Chandigarh are expected to see a reduction in their fuel costs as suppliers pass on the tax benefits. For households using PNG for cooking, the lower VAT could also reduce their gas bills.

The price of CNG in Chandigarh was previously Rs 100.50 per kilogram, while piped natural gas was available at Rs 54.70 per SCM. Following this decision, both prices are expected to be reduced soon.