SHILLONG, APR 1: The Meghalaya Cabinet has approved a significant reduction in Value Added Tax (VAT) on compressed natural gas (CNG), slashing the rate from 14.5% to 5%.

Chief Minister Conrad K. Sangma, while addressing media persons after the Cabinet meeting, said the decision aligns Meghalaya with other states and is aimed at making the state more attractive for energy investments.

“We have reduced our VAT rate on methane gas, specifically compressed natural gas (CNG), from 14.5% to 5% in line with what other states are doing. This is being done to create a competitive environment that will attract different agencies to come and set up their base here,” he said.

Clarifying the scope of the tax cut, the Chief Minister stated that the reduction applies specifically to CNG and is not directly linked to liquefied petroleum gas (LPG).

The move is expected to boost the adoption of cleaner fuel alternatives and encourage the expansion of natural gas infrastructure in the state.