He said that earlier the tax was reduced only on sales up to 50,000 SCMD per day from urban gas distribution network.

Uniformity in Tax Rates on CNG-PNG in Bihar; Gas to Get Cheaper for Small Consumers: Samrat Chaudhary

This decision of the Bihar government will bring uniformity and transparency in the price distribution system

Patna (Rajesh Chowdhury), Bihar Deputy Chief Minister Shri Samrat Chaudhary said that the state government has taken an important decision to bring uniformity in the rates of value added tax i.e. VAT on natural gas and to provide relief to small consumers. Under this, the proposal to make the tax rate equal on domestic and commercial sales of CNG and PNG has been approved by the Council of Ministers.

He said that earlier the tax was reduced only on sales up to 50,000 SCMD per day from urban gas distribution network. However, in case of gas supply through pipeline and crossing the border by GAIL, other CGD units had to pay tax at the old rate of 20%, due to which consumers were not getting relief.

Samrat Choudhary said that with the aim of eliminating this disparity and providing direct benefit to consumers, necessary amendments have been made in the conditions of the notification. With this, GAIL and other CGD companies will be able to provide CNG and PNG to consumers at cheaper rates by paying tax at the same rate.

The government believes that uniformity in VAT rates will not only provide relief to consumers but will also be a big step in the field of pollution control. Promoting the use of natural gas will reduce dependence on traditional fuels and will help in environmental protection.

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