Assam Cabinet Slashes VAT on CNG to Boost Eco-Friendly Transport
Guwahati, July 19, 2024: The Assam cabinet has announced a significant reduction in the Value Added Tax (VAT) levied on Compressed Natural Gas (CNG), a move aimed at promoting the use of cleaner fuels in the state. On Thursday, the cabinet decided to reduce the VAT on CNG from the current 14.5 percent to a mere 5 percent. This measure is set to remain in effect until March 31, 2027.
This strategic decision is part of a broader initiative to decrease reliance on petrol, diesel, and other fossil fuels. By fostering the adoption of CNG, the state government aims to pave the way for an “eco-friendly future” for Assam. The reduction in VAT is expected to rationalize CNG prices, making it a more attractive and affordable option for transportation.
To support this transition, the Assam State Transport Corporation (ASTC) is in the process of establishing 100 CNG stations across the state. This infrastructure development is crucial to ensuring the widespread availability and accessibility of CNG, thereby encouraging its use as a cleaner, more sustainable alternative to conventional fuels.
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In today's meeting of the #AssamCabinet, we decided to
— Himanta Biswa Sarma (@himantabiswa) July 18, 2024
✅️Reduce VAT on CNG to 5%
✅Approved funds for development in BTR
✅️Accord financial approval for key health care efforts
✅️Mandate Cabinet Ministers to visit Barak Valley every month pic.twitter.com/gPT4P1tJZ3
