Chandigarh, Sept. 19 -- The Chandigarh administration has slashed the Value Added Tax (VAT) on natural gas from 12.5% to 5%, bringing relief to consumers using compressed natural gas (CNG) and piped natural gas (PNG) in the city.

The reduction came into effect from midnight on September 18, according to a notification issued by the excise and taxation department under the Punjab Value Added Tax Act, 2005, as extended to the UT of Chandigarh.

The notification amends Schedule I of the Act to prescribe a tax rate of 5% on natural gas, including PNG and CNG. The amendment was made by the UT administrator under powers conferred by the Act.

The administration said the reduction would also boost the development and expansion of natural gas in...