Bihar govt announces reduction in value-added tax on CNG, PNG by 7.5%

The Bihar government on Tuesday announced a reduction in VAT on compressed natural gas (CNG) and piped natural gas (PNG), used for domestic purposes and motor vehicles, by 7.5 per cent - from 20 to 12.5 per cent - in the state.

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

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

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 per cent to 12.5 per cent 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.

Besides, the cabinet approved sanctioning of Rs 10 crore to Hockey India for organising the next Women's Asian Champions Trophy at Rajgir.

The event is a joint venture between Hockey India and the Bihar Government. It will be held at the newly-developed Rajgir Hockey Stadium from November 11 to November 20, 2024, Siddharth said.

A high level meeting, chaired by Director General of Police Alok Raj also held at Bihar Police headquarters to finalise security arrangements for the Women's Asian Champions Trophy.

Six countries China, Thailand, Malaysia, South Korea, Japan and India are participating in the championship.