Odisha's Diwali bonanza: CM Naveen Patnaik announces Rs 3 reduction of VAT on petrol and diesel

In view of this reduction, the loss of VAT revenue to state exchequer will be to the tune of Rs 1400 crore per annum.

Odisha Chief Minister Naveen Patnaik (File | Biswanath Swain, EPS)

BHUBANESWAR: Odisha Chief Minister Naveen Patnaik on Thursday announced reduction of VAT of Rs 3 each on petrol and diesel per litre in order to provide relief to general public from the rising fuel prices. 

This will be applicable from midnight of November 5. This is over and above the reduction in excise duty announced by Centre.

#BREAKING : CM Naveen Patnaik announces a ₹3 VAT reduction on petrol & diesel from November 5. This will be be over and above Excise duty cut announced by Centre. State will lose ₹2000 cr but this will be a big relief for people, Naveen said @XpressOdisha @NewIndianXpress

— Siba Mohanty (@Siba_TNIE) November 4, 2021

In view of this reduction, the loss of VAT revenue to state exchequer will be to the tune of Rs 1400 crore per annum. This is in addition to loss in VAT collection of  Rs. 1.6 litre on petrol and Rs. 2.8 litre on diesel, total amounting to Rs 700 crore which the state is likely to incur in view of excise duty reduction by the Centre.

 The total loss to state exchequer on account of  reduction in VAT is approximately Rs. 2000 crore. With this reduction, the petrol and diesel prices in the state is likely to be one of the lowest in the country, according to the Chief Minister's Office.