News › Markets  ·  27 Aug 2026, 3:57 PM IST  ·  5 days ago

Ladakh cuts VAT on natural gas to 5% to boost clean energy adoption

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In one line — Ladakh has significantly reduced its value-added tax on natural gas. The tax on CNG and PNG has been lowered from 21 percent to just 5 percent. This move aims to promote affordable clean energy and improve living standar

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Source: Economic Times · AI-summarised by Anadi · Updated 27 Aug 2026, 4:31 PM IST

What Happened

Ladakh has significantly reduced its value-added tax on natural gas. The tax on CNG and PNG has been lowered from 21 percent to just 5 percent. This move aims to promote affordable clean energy and improve living standards. It also supports the central government's city gas distribution network expansion plans. The reduction will help offset high transportation costs and encourage cleaner fuel adoption.