New Delhi | Jagran News Desk: The Odisha government has increased the Value Added Tax (VAT) on petrol and diesel with effect from Sunday. The VAT rate for petrol has been hiked from 26 per cent to 32 per cent with effect from May 17, increasing the price by Rs 3.11 per litre. Similarly, the VAT rate on diesel has increased from 26 per cent to 28 per cent, increasing the price by Rs 1.03 per litre.

After the changes, the price of petrol and diesel in Bhubaneshwar will now be Rs 71.69 and Rs 67.73 respectively, said a statement by the state government.

With this increase, the government of Odisha will collect VAT of Rs 16.60 per litre of petrol and Rs 14.34 per litre on diesel.

The collection of additional revenue would be utilised for delivery of services in health, education and other social sectors, the statement said.

The government said that the retail price of petrol in Bhubaneshwar will be less than most other cities in India and retail sale of price of diesel in Bhubaneshwar will be less than or at par with other cities in India after the VAT increase.

The last revision of VAT on petrol and diesel was made on January 5, 2016 from 23 per cent to 26 per cent.

With the ongoing coronavirus leading to massive losses, several state governments have been increasing VAT on fuels. Earlier, state governments of Assam, Nagaland, Karnataka, Maharashtra, among other states have increased VAT on fuel.

Earlier in May, the centre had increased the excise duty by a record Rs 10 per litre on petrol and Rs 13 per litre on diesel. It will gain close to Rs 1.6 lakh crore in additional revenues this fiscal from a record increase in excise duty on petrol and diesel. 

 

(with ANI inputs)

Posted By: James Kuanal