Bihar Reduces VAT On CNG, PNG To 12.5%

The Bihar government on Tuesday announced a reduction in VAT on compressed natural gas and piped natural gas, used for domestic purposes and motor vehicles, from 20% to 12.5%.

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

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

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

Industrial and business organizations requested the state government to slash the VAT as it is higher than that in neighbouring states, he said.

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

This decision will not only provide cheap gas to various users but also promote the process of changing from conventional fuel to natural gas, he said adding this will reduce pollution, Siddharth said. A notification will soon be issued in this regard.

The cabinet also approved a proposal of the state transport department pertaining to the launch of the “Mukhyamantri Vahan Chalak Kalyan Yojna-2024" for the welfare of commercial vehicle drivers who are natives of Bihar and have obtained driving licences from the state.

“Under the scheme, commercial vehicle drivers will be insured and will get several other benefits, like training, regular health checkups etc. They will have to first get themselves registered and would be provided unique identification numbers,” he said.

In case of fatalities, their next of kin will get financial benefits and other facilities, said the ACS.