Srinagar, Aug 27: In a landmark decision aimed at accelerating the transition to clean energy and easing costs for residents, the Union Territory Administration of Ladakh has drastically reduced the Value Added Tax (VAT) on Natural Gas—covering both Compressed Natural Gas (CNG) and Piped Natural Gas (PNG)—from 21% to just 5%.
The policy shift, approved by Lieutenant Governor Ladakh V.K. Saxena following recommendations from the Petroleum and Natural Gas Regulatory Board (PNGRB), marks a pivotal step toward building a sustainable, carbon-neutral ecosystem in the high-altitude region.
The PNGRB had previously advised bringing PNG and CNG under a concessional VAT framework of 5% or lower, stressing that initial price affordability is critical to driving adoption among households and local businesses in remote areas.
The reduction of VAT on natural gas will support the expansion of PNG and CNG services, strengthen the clean-energy ecosystem, and improve the quality of life of our people. These measures reflect the UT Administration’s commitment to building a more connected, competitive, clean, and sustainable Ladakh,” stated L-G V.K. Saxena while announcing the approval.
