By Our Correspondent
BHUBANESWAR: Odisha Chief Minister Naveen patnaik on Thursday announced reduction of Vat of Rs 3/each on petrol and diesel which will be applicable from midnight of 5 November.This is over and above the reduction in excise duty announced by Government of India.
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 at 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 Government of India.Hence the total loss to 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.
Government of India has taken a significant decision of reducing Central Excise Duty on Petrol & Diesel by Rs. 5 and Rs. 10 respectively from tomorrow. Prices of petrol & diesel will thus come down accordingly. The reduction in excise duty on Petrol and Diesel will also boost consumption and keep inflation low, thus helping the poor and middle classes. Today’s decision is expected to further spur the overall economic cycle. States were also urged to commensurately reduce VAT on Petrol and diesel to give relief to consumers with Odisha came first.
