PROPOSAL TO RATIONALISE VAT ON NATURAL GAS OKAYED
LUCKNOW : Uttar Pradesh cabinet on Tuesday approved a proposal to rationalize the Value Added Tax (VAT) on the natural gas to bring down the rates of natural gas, including for the piped natural gas, for domestic use from 26 to 10% in UP. CM Yogi Adityanath presided over the meeting which also approved amendment to UP Motor Vehicle Rules 1998 under which it would mandatory for bike taxis to write ‘bike taxi’ on their tanks. It also specified colours for autos and taxis.
LUCKNOW: Uttar Pradesh cabinet on Tuesday approved a proposal to rationalize the Value Added Tax (VAT) on the natural gas to bring down the rates of natural gas, including for the piped natural gas, for domestic use from 26 to 10 percent in Uttar Pradesh.
Minister for energy Shrikant Sharma said there were three slabs of VAT being imposed in the state. He said the state cabinet’s decision would make the natural gas CNG, PNG and urea cheaper in the state.
Under the new slab system, CNG will cost ₹46 per litre against existing ₹53 per litre. For domestic consumers too PNG cost will come down by Rs per litre. Once approved by the Centre the rate of 50 kg urea bag will also come down by Rs 33.50 per bag from existing Rs 330 per bag to Rs 296.50 per bag.
Additional chief secretary, commercial tax department, Alok Sinha said 10 percent VAT was being levied on the industry (as in Firozabad) that was getting gas supply directly from companies like the Gas Authority of India Limited. At other places where the industry was getting gas from other sources (as in Khurja), 26 percent tax was being levied.
In case of fertilizer manufacturing units, in addition to five percent VAT, additional five percent additional tax was being levied.
As the Union government did not recognize the additional tax, this was added to the cost of fertilisers. He said the state cabinet has now decided to levy 14.5 percent tax on fertilizer manufacturing units as was being done in other states.
He said the state government would send the proposal to the Centre. The revised rate on urea would be implemented after approval from the Centre, he said.