Bhubaneswar: In a major relief to the people of Odisha, Chief Minister Naveen Patnaik Thursday announced reduction in VAT on petrol and diesel by Rs 3 each in the state.
It will be effective from 5th November midnight. With the reduction, fuel prices in Odisha will be one of the lowest in the country, a notification issued by Chief Minister’s Office said.
In order to provide relief to general public from the rising fuel prices, Chief Minister Naveen Patnaik announced the reduction. This is over and above the reduction in excise duty announced by Government of India.
Due to this announcement, the loss of VAT revenue to state exchequer will be to the tune of Rs 1,400 crore per annum. This is in addition to the loss in VAT collection of Rs 1.6/ litre on petrol and Rs 2.8/ litre on diesel, total amounting to Rs 700 crore, which the state is likely to incur in view of excise duty reduction by Government of India. Putting them together, the total loss to state exchequer on account of reduction in VAT is approximately Rs 2,000 crore.
The VAT reduction will come as a major relief to the people of Odisha.
PNN