LNG Customs duty cut kindles hopes for inclusion in GST

Despite duty cut, LNG will still attract a higher tax than crude oil that has nil custom levy

The government’s push for natural gas-based economy has come in the form of a lowering in the customs duty on liquefied natural gas by half to 2.5 per cent. This coupled with the viability gap funding being provided for the mega Jagdishpur to Haldia and Bokaro to Dhamra pipelines is expected to improve natural gas utilisation in the country, especially in the gas-gtarved regions of eastern India.
 
Despite the cut in duty, however, natural gas that is imported in liquefied form will still attract a higher tax than crude oil that has nil custom levy. “Reducing the duty on