Bhubaneswar: CM Naveen Patnaik announces reduction of VAT of Rs3 on petrol & diesel w.e.f. Nov 5 midnight . This will be be over and above Excise duty cut announced by Centre.
In view of this reduction,the loss of VAT revenue to state exchequer will be to the tune of Rs 1400 Cr. per annum.
This is in addition to loss in VAT collection @ Rs. 1.6/ litre on petrol and Rs. 2.8/ litre on diesel,total amounting to Rs 700 Cr.,which the state is likely to incur in view of Excise duty reduction by Government of India.
Hence the total loss to state exchequer on account of reduction in VAT is approximately Rs. 2000 Cr. but is going as a major relief to the people of Odisha.
With this reduction,the petrol & diesel prices in the state is likely to be one of the lowest in the country.
Centre had announced excise duty reduction on petrol and diesel by Rs 5 and Rs 10 respectively.