In a bid to promote a gas-based economy, the new Government may cut customs duty on liquefied natural gas (LNG) to zero per cent from 2.5 per cent, to cut the cost of power further and aid city gas distribution (CGD) projects besides boosting fertiliser production, according to official sources.
Petroleum Ministry officials said they are hopeful that this cut would be included in the Union Budget 2019-20 proposals to be presented in Parliament this July. The matter has already been discussed with the Finance Ministry.
LNG is a clean fuel and its imports currently attract 2.5 per cent basic customs duty. In addition, a social welfare surcharge of 10 per cent is levied that takes the effective customs duty on LNG to 2.75 per cent. Read More