Goa Chamber of Commerce and Industry(GCCI) has written to chief ministerPramod Sawantasking for value-added tax (VAT) on piped natural gas (PNG) for industrial use to be reduced from 12.5% to 3%. GCCI presidentRalph De Sousasaid the rate of VAT on natural gas in Goa is more than four times that levied inMaharashtra, and double the rate of other states such as Gujarat and Haryana.

The sharp difference between the VAT levied in Goa and in the neighbouring states will put Goas industrial units at a disadvantage, said GCCI. It has also called for the inclusion of natural gas under the goods and Services tax (GST) regime.

The , particularly the manufacturing sector using PNG as a fuel, is primarily affected by this transition. Due to the inclusion under GST, the industry was able to claim the benefit of the amount of GST paid as input tax credit, and thus the GST was cost neutral.