Bhubaneswar: The cost of gasoline and diesel becomes cheaper in twin cities after the state government reduces VAT on fuel by Rs 3 per liter after excise decision.
From the midnight Friday, gasoline in twin cities will cost Rs 101.88 / liter while Diesel will come for Rs 91.51 / liter.
The Chairman of the Minister of Naveen Patnaik on Thursday announced a PPN reduction in fuel, becoming the first non-NDA state to cut taxes.
The day before, the center has announced a reduction in gasoline customs for rs 10 / liter and diesel by RS 5.
The official source said the decision to reduce VAT on gasoline and diesel would cost the state costs Rs 1400 Crore per year.
In addition to losing income, the state will also lose around Rs 700 Crore given the reduction of excise tasks in the middle.
Therefore, the total loss for the state in the story of the VAT reduction is around Rs 2,100 Crore, said a finance department official.
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 official said.
Arunachal Pradesh, Madhya Pradesh, Nagaland, Himachal Pradesh, Goa, Tripura, Karnataka, Mizoram, Haryana, Gujarat, Bihar and Uttar Pradesh are among countries that have slashed PPN and Diesel.
The main non-NDA countries that have put up pressure at the center to cut customs for gasoline and diesel have not yet reduced VAT.
In May last year, the state government has climbed VAT on gasoline from 26% to 32% and diesel from 26% to 28% with the aim of increasing the basis of Covid-19 pandemic revenue.
Dip in fuel prices after reducing customs and VAT by the center and the state government has sighed relieved for consumers.
“We appreciate the decision of the central and state to cut taxes.
But the prices of gasoline and diesel need to be reduced further for the benefit of the community.
The increase in prices of diesel has a cascading effect on important commodities.
Both the central and state must arise with a concrete solution to deal with it,” Rati said Ranjan, a professional-based professional.
Congress continues to attack the central and state, in connection with the reduction of customs and VAT on inadequate fuel.
BJD, which has decided to launch agitation in all states from Friday about the increase in fuel prices, has decided to delay for 10 days and urge the center to reduce the price of LPG.
BJP, meanwhile, said the state government must cut more VAT when the countries regulated by the Safron Party have reduced it by Rs 7.