# Chandigarh cuts VAT on natural gas from 12.5% to 5%

2026-09-18T18:59:32+00:00 | Governance | Indian Opinion Desk

Corroboration: 2 independent outlets

The Chandigarh administration has reduced the Value Added Tax (VAT) on natural gas from 12.5 per cent to 5 per cent, effective from midnight on September 18, 2026. The notification, issued by the excise and taxation department under the Punjab Value Added Tax Act, 2005, amends Schedule I of the Act to prescribe the lower rate for compressed natural gas (CNG) and piped natural gas (PNG). Both Times Now News and Hindustan Times report that the move is expected to reduce the tax burden on consumers using CNG for vehicles and PNG for cooking. However, both sources note that the actual reduction in retail prices will depend on whether gas suppliers pass on the full benefit of the lower tax. The administration said the cut would also encourage the expansion of natural gas infrastructure and promote cleaner fuel options in the city. Hindustan Times adds that the UT administration has previously set an ambitious target for PNG connections, though uptake has remained well below the target. The notification only changes the applicable tax rate and does not prescribe a new retail price for CNG or PNG.

## Indian Opinion Analysis

Both sources provide uniform straight reporting on the VAT cut, its effective date, and the condition that consumer prices depend on suppliers passing on the benefit. Hindustan Times adds context of Chandigarh's past shortfall in PNG connections, which slightly broadens the policy picture without being critical. The key point to watch is the pricing response of gas suppliers in Chandigarh after September 18, which will determine actual consumer relief.

## Coverage

- timesnownews.com (neutral report) <https://www.timesnownews.com/city/chandigarh/chandigarh-cuts-vat-on-cng-png-by-half-cheaper-gas-for-consumers-from-sept-18-article-156183809>
  Straight reporting of the VAT cut, its effective date, and potential consumer benefit, with no government framing or criticism.
- hindustantimes.com (neutral report) <https://www.hindustantimes.com/cities/chandigarh-news/chandigarh-administration-cuts-natural-gas-vat-from-12-5-to-5-101789761592965.html>
  Straight reporting of the notification and legal basis, with added context of past PNG target shortfall, but no critical framing.

Tags: Chandigarh, CNG, Indraprastha Gas Ltd, PNG, VAT
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