Amid concerns regarding the rising pollution in the state and in a bid to reduce dependency on fossil fuels, the Assam cabinet on Thursday decided to bring down the Value Added Tax (VAT) levied on Compressed Natural Gas (CNG) significantly.

The state cabinet today decided to reduce VAT charged on CNG from the present 14.5 per cent to 5 per cent. The move will remain in force till March 31, 2027.

Addressing the media, cabinet minister Keshab Mahanta said, "You may be aware that to reduce pollution levels, Assam State Transport Corporation is setting up 100 CNG stations."

The decision was taken to reduce the use of petrol, diesel and other fossil fuels and bring about the use of clean fuel to ensure in what is being dubbed as "an eco-friendly future" for Assam.

The move will rationalise the prices of CNG to ensure its wider adoption and make it easily available as an eco-friendly option for affordable transport, according to the Assam transport minister.

"Today, we decided to cut VAT on CNG to 5 per cent from the current 14.5 per cent to make CNG easily available, ensure affordable and eco-friendly transport and to reduce the use of petrol and diesel," added Keshab Mahanta.