New Delhi: Ladakh has slashed value-added tax on natural gas, taking the rate on CNG and PNG down to 5 percent from 21 percent. Lieutenant Governor Vinai Kumar Saxena announced the reduction on Thursday, framing it as a measure to make clean energy affordable and to improve ease of living across the Union Territory.
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Saxena said the decision would strengthen the Centre's wider plan to extend the city gas distribution network in Ladakh, which is intended to bring affordable piped gas to households.
"Glad to share that the UT of Ladakh has significantly reduced VAT on Natural Gas (CNG & PNG) from 21 percent to just 5 percent, a major step towards promoting affordable clean energy and improving the ease of living for the people of Ladakh," the LG said in a post on X.
Moving energy into Ladakh is expensive, a consequence of the region's difficult terrain and extreme climate. Saxena said the lower tax rate would help absorb some of that cost, while also giving consumers a reason to switch to cleaner fuels.
The revised rate places Ladakh alongside several states that already levy low VAT on natural gas.
"This brings Ladakh at par with states like Gujarat, Andhra Pradesh and Karnataka, advancing Prime Minister Narendra Modi's broader vision for a sustainable and carbon-neutral future," Saxena said.
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The UT administration, he added, remains committed to building a connected, competitive, clean and sustainable Ladakh, and to keeping essential energy affordable and accessible for everyone.