Panaji: The Chamber of Commerce and Industry of Goa (GCCI) has been written to the Minister of Chief Pramod Sawant requesting Value Added Tax (PPN) in Piped Natural Gas (PNG) for industrial use to be reduced from 12.5% to 3%.
GCCI President Ralph De Sousa said the level of VAT on natural gas in Goa was more than four times collected in Maharashtra, and doubled the level of other countries such as Gujarat and Haryana.
Sharp differences between VAT collected in Goa and in neighboring countries will place the cave industry units in a less profitable position, GCCI said.
It also calls for the inclusion of natural gas under the Tax Regime of Goods and Services (GST).
On June 30, the Country Pollution Control Board of Goa (GSPCB) said the use of Petcooke oil and the furnace would be stopped from December 31.
GSPCB recommends compressed natural gas (CNG) and liquefied natural gas (LNG) as an alternative, but unlike furnaces, but not like oil and petcoke furnaces, which are subject to taxes under the GST regime, natural gas and CNG are subject to tax under the VAT.
“Industry, especially the manufacturing sector using PNG as fuel, is mainly influenced by this transition.
Because it is included under GST, this industry is able to claim the benefits of the GST amount paid as input tax credits, and thus GST is a neutral cost,” said Sousa .
Because there is no VAT credit available in PNG, it will have a cascading effect on the final expense to consumers and make products less competitive towards those from other states.
Gujarat and Haryana collected 6% of VAT on natural gas while Maharashtra imprisoned a level of 3% in natural gas for industrial use.
“Pandemic and economic slowdown have dramatically affected the cost of raw materials in the state.
In addition, significant VAT components in PNG in Goa will disrupt competitiveness,” President GCCI said.
Reduce VAT on natural gas from 12.5% to 3%, the word Chamber of Commerce and Industry Goa
