Bihar government announces 7.5% reduction in value added tax on CNG, PNG

Industry and trade organizations have called on the state government to reduce VAT, as it is higher than that of neighboring states.

3 minutes of reading Last update: October 1, 2024 | 11:40 p.m. STI

The Bihar government on Tuesday announced a 7.5 per cent reduction in VAT on compressed natural gas (CNG) and piped natural gas (PNG), used for domestic purposes and for motor vehicles, from 20 to 12 .5 percent in the state.

The government also announced the reduction of PNG VAT, used by industrial units manufacturing goods, from 20 percent to 5 percent.

Click here to join us on WhatsApp

The decision to this effect was taken at a Cabinet meeting chaired by Chief Minister Nitish Kumar.

Speaking to reporters, soon after the cabinet meeting, S Siddharth, Additional Chief Secretary (ACS), Cabinet Secretariat, said, “The State Cabinet has approved reduction in VAT on CNG and PNG, used for domestic purposes and for motor vehicles, from 20% to 20%. 12.5 percent in the state.

Industrial and trade organizations have requested the state government to reduce VAT as it is higher than that of neighboring states, he said.

After consideration, the government decided to reduce it on natural gas sold via the city gas distribution system, the official said.

The move will not only provide cheap gas to various users but also promote the process of switching from conventional fuel to natural gas, he said, adding that it would reduce pollution, Siddharth said.

A notification will be issued soon in this regard.

The cabinet also approved a proposal of the state transport department for launching the Mukhyamantri Vahan Chalak Kalyan Yojna-2024′ for the welfare of commercial vehicle drivers hailing from Bihar and having obtained driving license from the state.

Under this program, commercial vehicle drivers will be insured and enjoy several other benefits, such as training, regular health checkups, etc. They will first have to register and will be given unique identification numbers, he said.

In case of death, their next of kin will benefit from financial benefits and other facilities, the ACS said.

Besides, the cabinet approved provision of Rs 10 crore to Hockey India for organizing the upcoming Asian Women’s Champions Trophy in Rajgir.

The event is a joint venture between Hockey India and the Government of Bihar. It will be held at the new Rajgir Hockey Stadium from November 11 to 20, 2024, Siddharth said.

A high-level meeting, chaired by Director General of Police Alok Raj, was also held at the Bihar Police headquarters to finalize security arrangements for the Asian Women’s Champions Trophy.

Six countries: China, Thailand, Malaysia, South Korea, Japan and India are participating in the championship.

(Only the title and image of this report may have been reworked by Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

First publication: October 1, 2024 | 11:40 p.m. STI