SHILLONG, APR 1: The Meghalaya cabinet has approved a sharp reduction in Value Added Tax on compressed natural gas (CNG), lowering it from 14.5% to 5%.
Addressing media persons after the meeting, chief minister Conrad K Sangm said the move brings Meghalaya in line with other states and is aimed at creating a competitive environment to draw energy companies and agencies to set up operations in the state.
“We had reduced our VAT rate on methane gas as compressed natural gas (CNG) from 14.5% to 5% in line with what other states are doing and this is also being done of course to create a competitive environment that will be able to attract different agencies to come up and set up their base out here,” he told reporters.
Asked whether the cut was connected to liquefied petroleum gas (LPG), Sangma clarified: “Yes, this is CNG basically.”
By Our Reporter
