The Assam government has announced a major clean energy and electric mobility initiative in its latest state budget, with PNG VAT slashed to 5% as one of the key measures to reduce fuel costs and promote cleaner energy adoption. Finance Minister Jayanta Mallabaruah introduced a package of tax incentives aimed at making piped natural gas more affordable, expanding renewable energy usage, and encouraging citizens to shift towards electric vehicles.
PNG VAT Slashed to 5% to Make Clean Fuel More Affordable
The key highlight of the budget is the decision to slash PNG VAT to 5% from the earlier rate of 14.5%. The steep reduction in Value Added Tax on piped natural gas is expected to make cleaner fuel more affordable for households across the state.
The government believes this step will help lower monthly energy expenses, especially for middle-class and suburban families using PNG for cooking and household needs. The tax reduction is also expected to support the expansion of city gas distribution networks by improving affordability and encouraging greater adoption of natural gas infrastructure.
With PNG VAT slashed to 5%, Assam aims to promote a cleaner alternative to conventional fuels while supporting its long-term environmental goals. The move aligns with broader efforts to reduce carbon emissions and increase access to cleaner energy sources.
3% Motor Vehicle Tax Subvention for Electric Vehicle Buyers
Along with natural gas incentives, the Assam government has introduced financial support for electric vehicle buyers. The budget announced a 3% motor vehicle tax subvention for citizens purchasing new electric vehicles during the current financial year.
This incentive is expected to reduce the initial ownership cost of EVs by lowering registration-related expenses and making electric vehicles more attractive to consumers. The move complements the existing national GST benefit, where electric vehicles are placed under a lower 5% GST category.
Assam’s Push Towards Sustainable Transportation
The combination of PNG VAT slashed to 5% and EV tax incentives highlights Assam’s commitment to cleaner energy solutions and sustainable transportation. The measures are expected to encourage households to adopt cleaner fuels while motivating more citizens to switch from conventional vehicles to electric mobility.
By offering targeted tax benefits, the state government aims to create a stronger ecosystem for renewable energy, cleaner fuels, and electric vehicles. The latest budget initiatives could play an important role in reducing pollution, supporting green infrastructure development, and accelerating Assam’s journey towards sustainable growth.
The announcement of PNG VAT slashed to 5%, along with EV buyer incentives, marks a significant step towards building an environmentally responsible energy and transport system in the state.
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