IOC.NSE

Indian Oil Corporation Ltd.

SHILLONG: The Meghalaya Cabinet has approved a sharp reduction in the Value Added Tax (VAT) on methane gas used as Compressed Natural Gas (CNG) — bringing it down from 14.5 percent to 5 percent — in a move aimed at drawing private investment into the state's energy sector and making CNG more affordable for consumers. Chief Minister Conrad K. Sangma announced the decision on Wednesday, framing it as a step to align Meghalaya with tax rates already in place across most other Indian states. Also Read: Guwahati Commuters Flag Overcrowding & Issues in New CNG AC Buses The reduction is significant for a state that has lagged behind in clean fuel infrastructure. By narrowing the tax gap with the rest of the country, the Meghalaya government hopes to make the state a more attractive destination for companies looking to set up CNG operations in the Northeast. "We have reduced our VAT rate on methane gas as Compressed Natural Gas from 14.5 percent to 5 percent in line with what other states are also doing," Sangma said. "This is being done to create a competitive environment so that we will be able to attract different agencies to come and set up their base out here." Officials indicated the tax rationalisation is part of a broader strategy to position Meghalaya as a viable hub for energy infrastructure investment in the region.