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The Maharashtra government has decided to reduce the VAT on CNG from 13.5 per cent to 3 per cent and it will be implemented from April. Maharashtra Deputy Chief Minister and Finance Minister Ajit Pawar had earlier announced that the government would initiate measures to bring down CNG prices.
The government’s emphasis to bring down CNG prices is also oriented towards promoting greater use of transports that are environment-friendly. CNG is perceived as more environmentally-friendly as compared to diesel and petrol.