In a move aimed at improving revenue generation significantly and reducing environmental pollution by encouraging industry to shift to natural gas, Punjab Government on Friday notified reduction in VAT (value added tax) on Natural Gas, in gaseous State other than compressed natural gas, from 14.3 to three per cent.
With this, Punjab has become the State with the lowest VAT on natural gas in the northern region, also comprising Haryana, Himachal Pradesh, Rajasthan, Delhi and Chandigarh.
The notification, issued in pursuance of a decision taken earlier by the State Government, will incentivize the industrial units in the State to switch over from polluting fuel to the environment-friendly natural gas, thus reducing industrial pollution in the State.
