Ranchi: In view of LPG disruptions linked to the West Asia conflict, traders here have sought a reduction in VAT on piped natural gas (PNG), claiming the dual pressure of supply shortage and high tax is straining both consumers and businesses.With LPG availability limited and demand surging during the wedding season, many establishments are increasingly looking at PNG as an alternative, which is currently priced at around Rs 47.38 per SCM in districts such as Ranchi, but high VAT remains a deterrent.
Watch
Delhi’s Gas Shift: IGL Asks Residents to Move from LPG to PNG Amid Supply Push
At a meeting of the petroleum and explosives sub-committee of the Federation of Jharkhand Chamber of Commerce and Industries (FJCCI) members flagged that PNG attracts a VAT of around 14%-15%, significantly higher than neighbouring Bihar’s 5%.
“Such disparity is unfair to consumers and businesses. A reduction in VAT will not only ease costs but also promote the use of cleaner fuel,” said sub-committee chairman Jaswinder Singh.“We are being squeezed from both sides; cylinder supply is erratic and PNG, is heavily taxed. At Rs 47 per SCM and with 14%-15% VAT, our input costs have shot up by 20%-25% this season alone. For large events, we cannot risk fuel shortage, so we are forced to arrange backup cylinders at higher rates or use coal chulhas,” said Ravindra Puniya, a Ranchi-based caterer.
FJCCI joint secretary Navjot Alang stated, “Caterers, restaurants, hospitals, temples, gurdwaras and other eateries are facing a severe fuel crunch. The high VAT further compounds their operational challenges.”GAIL deputy general mamager Prashant Singh said the issue has already been taken up with the govt. “Around 14% VAT is currently applicable on PNG. We have requested the state govt for a reduction,” he said.Federation members pointed to delays and hurdles in obtaining PNG connections, urging authorities to streamline the process and prioritise activation where connections have been installed.
