The nodal body for the promotion of auto LPG in India has called for uniformity in the treatment of domestic and commercial LPG under the Goods and Services Tax regime, saying the current rules tax commercial LPG far higher than domestic LPG leading to adverse economic outcomes.
“Currently, the duties levied on commercial LPG are much higher than domestic LPG,” Suyash Gupta, director general of the Indian Auto LPG Coalition (IAC) said in a statement on Tuesday.
“In fact, there is zero custom and excise duty on domestic LPG and minimal VAT while the same are cumulatively as high as 12-15% on commercial LPG,” he said.
In addition, Mr. Gupta said, consumers can avail of a subsidy on domestic LPG cylinders which gives rise to several issues since a large number of domestic LPG cylinders are often diverted for commercial use in vehicles which is a misuse of the subsidy.
“Secondly, higher tax rates make auto LPG a less attractive option when its use needs to be encouraged by all means,” Mr. Gupta added.
Lower emissions
The environmental benefits of using auto LPG as opposed to petrol or diesel are vast, according to IAC which said that it emits up to 120 times lesser particulate emissions than diesel vehicles, 96% lesser nitrogen dioxides (NOx) than diesel, 68% lesser NOx than petrol and significantly lower NOx than CNG.
Cheaper cost
“At the same time, it is much cheaper than petrol and diesel and very comparable to CNG,” IAG said. “Also, unlike CNG, auto LPG can be easily installed on two-wheelers as well. It is to be underlined that emissions from two-wheelers are major culprits for poor urban air quality.” “The government must initiate adequate measures to promote its use,” Mr. Gupta added.
