Question : VAT ON PNG

(a) whether consumers of Piped Natural Gas in Delhi are required to pay 20 percent Value Added Tax (VAT) on their bills;

(b) if so, the guidelines with regard thereto;

(c) whether the Government is aware that this extent of VAT is the highest for any item and the consumers have to suffer a lot;

(d) if so, whether the CNG supplier Indraprastha Gas Ltd. (IGL) has also represented for lowering the VAT on PNG; and

(e) if so, the response of the Government thereto?

MINISTER OF STATE IN THE MINISTRY OF PETROLEUM & NATURAL GAS (SHRI DINSHA PATEL)

(a) & (b): Yes, Sir. This is as per the provisions contained in the Fourth Schedule to the Delhi Value Added Tax Act, 2004 read with Section 4 of the Act.

(c): The highest rate of VAT is 20%.

(d) & (e): Yes, Sir. IGL has represented to the Government of N.C.T. of Delhi. No decision has been taken so far by the Delhi Government in the matter.