Maharashtra Budget proposes reduction in VAT on CNG to 3 pc from 13.5 pc

In a relief for consumers of domestic piped CNG as well as vehicle owners, Maharashtra Finance Minister Ajit Pawar on Friday proposed a drastic cut in the Value Added Tax (VAT) on natural gas from 13.5 per cent to 3 per cent.

Pawar, who presented the state Budget in the Assembly, said this reduction will cause a revenue loss of Rs 800 crore annually.

Natural gas is “environment-friendly" and is largely used for domestic piped gas supply and also for CNG-powered motor vehicles, auto-rickshaws, taxis and private vehicles, the minister said.