States reject Centre demand to cut LNG Taxes

NEW DEHI: The states have rejected the centre’s demand to lower taxes on natural gas and liquified natural gas, dashing the hopes of gas-based fertiliser and power plants of securing low-cost fuel.

"Natural gas and LNG cannot be given declared goods status... states are completely opposed to it," Sushil Kumar Modi, Bihar deputy chief minister and chairman of the empowered committee of finance ministers said after the meeting of the panel here.

PM Manmohan Singh had made a case for giving these commodities a declared goods status that could have brought down VAT to 5% in most states.