JOIN USOdisha cuts VAT on petrol, diesel by Rs 3 per litre
A day after the Centre slashed excise duty on fuel, the Odisha government on Thursday announced a reduction of Value Added Tax (VAT) on petrol and diesel by Rs 3 per litre each and its implementation in the coastal state from the midnight of November 5.
Maintaining that the move was aimed at providing relief to common people, who were distressed by the relentless hike in fuel prices, a statement issued by Chief Minister Naveen Patnaik’s office said that the state exchequer will incur an annual loss of Rs 1,400 crore owing to its decision.
This would be in addition to the loss of Rs 700 crore the state would face due to the excise duty reduction by the central government, it said.
Also Read: BJD launches protests against price rise
Overall, the state would lose approximately Rs 2,000 crore annually, the statement underlined. Once the new rates are applicable, diesel price per litre will go below Rs 100, while petrol will be available at a little over Rs 100 per lire, it added.
From Saturday, the prices of petrol and diesel will be reduced by Rs 9.60 and Rs 15.80 per litre respectively after the decisions of the central and the state governments are implemented in Odisha.
As of Thursday, with the implementation of the Centre's excise duty cut, petrol costs Rs 104.91 per litre in Odisha and diesel is priced at Rs 94.51 per litre in Bhubaneswar.
Meanwhile, the ruling BJD, which had launched a state-wide agitation against the fuel price hike from October 31 announced to put on hold its protest for 10 days from Friday as the Centre was yet to reduce the price of cooking gas.
Biju Yuva Janata Dal (BYJD) president Byomkesh Ray said the party hoped that the Centre would reduce the price of LPG cylinders within 10 days.
“The Centre was left with no option but to cut the excise duty on petrol and diesel following mass protest by the BJD. We have put on hold our agitation for the next 10 days. But we will intensify our stir again if the Centre does not pay heed to our demand ,” Ray, who is also an MLA, said.
However, the opposition BJP and Congress criticised the BJD government and demanded an additional value-added tax cut on petrol and diesel.
BJP general secretary P Harichandan said the BJD government should not take credit for lowering VAT on the two fuels by Rs 3 per litre as some BJP-ruled states have decided to cut VAT on petrol, diesel by Rs 7 per litre.
“Therefore, we expect a further slash of VAT by Rs 4 per litre on the two fuels in Odisha,” he said. Criticising both the BJP and the BJD, Congress leader and former minister Kishore Patel, “They (BJD & BJP) are two sides of the same coin.
They had raised the price after discussing with each other and now announcing a cut on excise duty tax after consultation. Both the parties are anti-people and anti-poor,” Patel said.
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