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Odisha joins UP, Bihar to reduce VAT on petrol, diesel by Rs 3 | Economy News

Handshake 4u by Handshake 4u
November 4, 2021
in Uncategorized
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New Delhi: Following the Centre’s suit, Odisha Chief Minister Naveen Patnaik on Thursday announced a 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 order to provide relief to the general public from the rising fuel prices. Chief Minister Naveen Patnaik today announced a reduction of Vat of Rupees 3 each on petrol and diesel which 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. Also Read: Centre’s excise duty cut on petrol, diesel to cost Rs 45,000 crore to exchequer: Report

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. Also Read: Bihar reduces VAT on petrol, diesel by up to Rs 3.90, announces CM Nitish Kumar

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