Ladakh cuts VAT on natural gas to 5% to boost clean energy adoption

Leh/Jammu: Ladakh Lieutenant Governor Vinai Kumar Saxena on Thursday announced a significant reduction in value-added tax (VAT) on natural gas, including CNG and PNG, from 21 per cent to 5 per cent to promote affordable clean energy and improve ease of living for people in the Union Territory.

Saxena said the move would give a major boost to the Centre's larger plan to roll out the city gas distribution (CGD) network to provide affordable piped gas to households across Ladakh.

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"Glad to share that the UT of Ladakh has significantly reduced VAT on Natural Gas (CNG & PNG) from 21 per cent to just 5 per cent, a major step towards promoting affordable clean energy and improving the ease of living for the people of Ladakh," LG said on X.

The VAT reduction would also help offset the high cost of transporting energy due to Ladakh's difficult terrain and extreme climatic conditions, besides encouraging consumers to adopt cleaner fuels, he said.

"This brings Ladakh at par with states like Gujarat, Andhra Pradesh and Karnataka, advancing Prime Minister Narendra Modi's broader vision for a sustainable and carbon-neutral future," Saxena said.

The UT Administration remains committed to building a connected, competitive, clean and sustainable Ladakh while ensuring that essential energy remains affordable and accessible to all, he added.