Guwahati (Assam): The Assam Government has announced a significant reduction in Value Added Tax (VAT) on Piped Natural Gas (PNG), lowering the rate from 14.5% to 5% as part of its efforts to promote cleaner energy and make natural gas more accessible to consumers across the state.
Chief Minister Himanta Biswa Sarma announced the decision through a post on X, stating that the tax cut is intended to accelerate the adoption of cleaner fuel while supporting economic and industrial development.
According to the Chief Minister, the revised VAT rate will reduce the cost of PNG for consumers, improve the operational viability of suppliers, and encourage industries to shift towards cleaner and more efficient sources of energy. He added that the move also aligns with Assam’s vision of achieving greater energy self-reliance.
The decision has been highlighted under the Assam Budget 2026–27 and represents a substantial reduction in the tax levied on Piped Natural Gas. The government expects the revised tax structure to make PNG a more attractive fuel option for domestic, commercial, and industrial users.
PNG is widely regarded as an environmentally friendly alternative to conventional fuels due to its lower carbon emissions and uninterrupted pipeline-based supply. Officials believe the reduced VAT will encourage wider adoption of the fuel, contributing to cleaner energy consumption while supporting the state’s environmental goals.
A graphic released by the state government alongside the announcement illustrated the reduction in VAT from 14.5% to 5% and highlighted the expected outcomes of the policy. These include improved affordability for consumers, stronger financial viability for PNG suppliers, and greater adaptability of natural gas across industrial sectors.
The latest measure is also expected to encourage further investment in gas distribution infrastructure, enabling the expansion of PNG connectivity to more households, businesses, and industries across Assam in the coming years.
With the revised VAT now in place, the state government aims to strengthen the use of cleaner fuels, lower energy costs for consumers, and support sustainable industrial growth while advancing Assam’s long-term energy transition objectives.
