Odisha increases VAT on petrol, diesel
Bhubaneswar: Petrol and diesel will cost dearer in Odisha from May 17 as the State government increased VAT on the fuel.
The VAT rate on petrol is increased from 26% to 32% w.e.f May 17 increasing Rs 3.11 per litre. The retail sale price of petrol at Bhubaneswar will be Rs 71.69 per litre on May 17, 2020.
The VAT rate on diesel is increased from 26% to 28% w.e.f May 17 increasing Rs 1.03 per litre. The retail sale price of diesel at Bhubaneswar will be Rs 67.73 per litre on May 17, 2020.
The Government of India increased cess and special excise duty of Rs 10 per litre on petrol and Rs 13 per litre of diesel w.e.f 06.05.2020. Thus, the Govt.of India is collecting total tax of Rs 32.98 per litre of petrol and Rs 31.83 per litre of diesel, whereas the Govt of Odisha will collect VAT of Rs 16.60 per litre of petrol and Rs.14.34 per litre of diesel after present revision from 17.05.2020.
The last revision of VAT rate on petrol & diesel was made on 05.01.2016 raising from 23% to 26%.
The collection of additional revenue would be utilized for delivery of services in health, education and other social sectors, said the Odisha government in a release.