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 infrastructure in Chandigarh and encourage wider adoption of cleaner fuel options. The decision comes as the UT administration has been seeking to expand the use of PNG in the city. Chandigarh has previously set an ambitious target for PNG connections, though uptake has remained well below the target. For consumers, however, the actual reduction in retail prices will depend on how the lower VAT translates into the final price charged by gas suppliers. The notification only changes the applicable tax rate and does not prescribe a new retail price for CNG or PNG....