Compressed Natural Gas, or CNG, will become cheaper in Maharashtra from April 1 as the state government on Saturday announced that the value added tax on the fuel will be reduced from 13.5% to 3%.
“From April, CNG will be cheaper in the state, which will benefit autorickshaws, taxi drivers, passenger vehicles as well as citizens,” Deputy Chief Minister and Finance Minister Ajit Pawar wrote in a tweet in Marathi. “This decision is also important for pollution control.”
On March 11, Pawar had made the proposal to reduce value added tax on CNG while presenting the state’s Budget, Mint reported. Pawar had also said that the decision would result in an annual revenue loss of Rs 800 crore for the government.
“The state government has always strived towards extending relief to the common man,” Pawar was quoted as saying by The Indian Express. “The VAT reduction in CNG is a step in that direction.”
On Saturday, Pawar said that a notification has been issued to implement the decision.
The government’s decision to slash the CNG prices is aimed at encouraging people to use more environment-friendly modes of transport.
While presenting the Budget, Pawar had said that the “environment-friendly natural gas” is used for domestic piped gas supply as well as for CNG-powered autorickshaws, taxis and other vehicles, Mint reported.