Bhubaneswar: With the center cut Customs in gasoline and Diesel, Head of Minister of Naveen Patnaik on Thursday announced a reduction in VAT on fuel amounting to Rs 3 per liter, which will take effect from November 5 at midnight.
An official statement issued by the office of the minister’s chairman said that the VAT reduction was above and above the reduction of excise tasks announced by the central government.
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“The decision to reduce VAT on gasoline and diesel has been taken to provide assistance to the public from the increase in fuel prices.
The price of fuel in Odisha will be one of the lowest in this country,” said the statement.
Given this reduction, the loss of VAT revenue to the state will reach 1,400 crore rs per year.
This is an addition to losing a VAT collection of Rs 1.6 liters on gasoline and 2.8 liters Rs in Diesel, a total of Rs 700 Crore, which tends to be issued in the view of customs reduction.
Therefore, the total loss for the state in the story of VAT reduction is around RS 2,000 Crore.
With the decision to reduce VAT on fuel, Odisha joined the state such as Assam, Goa, Gujarat, Tripura, Manipur, Delhi, Karnataka, Uttar Pradesh and Haryana.
The state government in May has climbed VAT on gasoline from 26% to 32% and in diesel from 26% to 28% with the aim of increasing state income from the Covid-19 pandemic.