Maharashtra issues notification to cut VAT on CNG; fuel to be cheaper from Apr 1

The Maharashtra government on Saturday issued a notification to cut value added tax (VAT) on compressed natural gas (CNG) from 13.5 per cent to 3 per cent.

Consumers will have to pay less for CNG due to the reduction in VAT. The new rates will come into effect from April 1.

Earlier this month, during the Budget session, Maharashtra Finance Minister Ajit Pawar had proposed a cut in VAT on natural gas from 13.5 per cent to 3 per cent. The reduction in tax will cost the state Rs 800 crore annually, he had said.

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, Pawar had said during the Budget session.

On Saturday, Pawar tweeted in Marathi that the notification has been issued to reduce VAT on CNG as per the earlier announcement.

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— Ajit Pawar (@AjitPawarSpeaks) March 26, 2022

The reduction in CNG prices will benefit autorickshaws, taxi drivers, passenger vehicles and citizens, he said, adding that the decision is also important for pollution control.

The new rates will be effective from April 1, 2022, Pawar added.

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