With an aim of providing relief to National Capital Region industries, wherein norms call for a shift to cleaner fuels, the Haryana government has proposed a 50 per cent reimbursement of value-added tax (VAT) collected on natural gas purchased by micro, small, and medium enterprises (MSMEs) for two years. Further, the shift is expected to impact competitiveness of industries due to an increase in their cost of production.

In addition to this, a provision for 50 per cent reimbursement on VAT on natural gas (piped or compressed) for industries in the MSME sector has been proposed in the budget. The proposition has been made for assisting these industries in the maintenance of the competitiveness amid conversion to cleaner fuels, given that such conversion requires significant investment in infrastructure.