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Odisha hikes VAT on petrol, diesel

Post News Network
Updated: May 17th, 2020, 00:32 IST
in Business, Coronavirus, Top Stories
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Bhubaneswar: In a bid to increase revenue in the wake of COVID-19 pandemic, Odisha government Saturday enhanced the Value Added Tax (VAT) imposed on petrol and diesel.

The VAT on petrol was hiked by six per cent while the same on diesel was increased by 2 per cent with effect from midnight, Finance department said in a press release.

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The VAT rate on petrol is increased from 26 per cent to 32 per cent increasing which inflate the price by Rs 3.11 per litre. So, the retail sale price of petrol at Bhubaneswar will be Rs.71.69 per litre.

The VAT rate on diesel has been increased from 26 per cent to 28 per cent thus surging by Rs 1.03 per litre. The retail sale price of diesel at Bhubaneswar will be Rs 67.73 per litre.

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

The Centre had increased cess and special excise duty of Rs 10 per litre on petrol and Rs 13 per litre of diesel May 6.

Now, the Centre is collecting total tax of Rs 32.98 per litre of petrol and Rs 31.83 per litre of diesel. The state government will collect VAT of Rs 16.60 per litre of petrol and Rs 14.34 per litre of diesel after the latest revision, the department said.

In the meantime, states like Assam, Nagaland, Maharastra, Karnataka, Rajasthan, Haryana, Tamil Nadu and Delhi have increased VAT/Sales Tax on petrol and diesel in the last three months.

PNN

Tags: DieselOdishaPetrol
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