(ET)
The oil ministry has proposed reducing the goods and services tax on compressed natural gas (CNG)-driven vehicles to 5 per cent — at par with electric vehicles — from the current 28 per cent to help the government’s drive to popularise gas vehicles.
This could mean more than 20 per cent reduction in prices of CNG vehicles. The ministry is seeking support from the finance ministry to cut GST rate on CNG vehicles to make them more affordable, people aware of the development. Natural gas emits 25 per cent less Co2 than petrol on every unit of energy produced.
The government aims to raise the share of natural gas in country’s primary energy mix to 15 per cent by 2030 from 6 per cent now.
