SHILLONG : Conrad K Sangma has announced a major policy decision to reduce Value Added Tax (VAT) on compressed natural gas (CNG) from 14.5% to 5%, following approval by the state cabinet.
Speaking to media persons after the cabinet meeting, Sangma said the move is aimed at bringing Meghalaya in line with other states and creating a more competitive environment to attract energy companies and related agencies to set up operations in the state. He emphasised that the reduction is part of the government’s broader strategy to boost investment and infrastructure in the energy sector.
“We have reduced our VAT rate on methane gas as compressed natural gas (CNG) from 14.5% to 5% in line with what other states are doing. This is also being done to create a competitive environment that will be able to attract different agencies to come and set up their base here,” he said.
Clarifying doubts, the chief minister stated that the tax cut applies specifically to CNG and is not directly linked to liquefied petroleum gas (LPG). The decision is expected to encourage the adoption of cleaner fuel alternatives while making the state more attractive for future energy projects.