On the occasion of Diwali, Odisha Chief Minister Naveen Patnaik on Thursday announced reduction of value-added tax (VAT) of Rs 3 per litre each on petrol and diesel to give relief to consumers.
Bhubaneswar (Odisha): On the occasion of Diwali, Odisha Chief Minister Naveen Patnaik on Thursday announced reduction of value-added tax (VAT) of Rs 3 per litre each on petrol and diesel to give relief to consumers.
As per the Chief Minister’s office, the new prices will be applicable from midnight of November 5.
“In view of this reduction, the loss of VAT revenue to state exchequer will be to the tune of Rs 1400 crore per annum. This is in addition to the loss in VAT collection of Rs. 1.6 per litre on petrol and Rs. 2.8 per litre on diesel, total amounting to Rs 700 crore, which the state is likely to incur in view of Excise duty reduction by the Government of India,” the CMO said.
“Hence, the total loss to the state exchequer on account of reduction in VAT is approximately Rs 2000 crore but is going as a major relief to the people of Odisha,” it added.
The state government said that with this reduction, the petrol and diesel prices in Odisha are likely to be one of the lowest in the country.
This comes a day after Centre on Wednesday reduced excise duty on petrol and diesel to bring down the prices of the two petroleum products which had been seeing an upward trend.
The Finance Ministry said that excise duty on petrol will come down by Rs 5 and that on diesel by Rs 10 and it will be effective from Thursday.
The Centre had urged the states “to commensurately reduce” VAT on petrol and diesel to give relief to consumers.
Notably, the states governments of Uttar Pradesh, Uttarakhand, Manipur, Gujarat, Assam, Karnataka, Goa and Tripura have also announced a reduction of VAT on fuel.
first published:Nov. 4, 2021, 2:13 p.m.