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Bhubaneswar: A day after Odisha government announced to increase Value Added Tax (VAT) on petrol and diesel, Odisha Congress termed it as a double whammy for people who are already facing problems due to Covid-19 lockdown.
Terming the petrol, diesel price hike as unfair, the Odisha PCC chief Niranjan Patnaik said, “Both Centre and Odisha government have compounded the miseries of people as they are facing numerous problems due to the lockdown.”
Not only Congress, BJP also alleged that it was not the right time for making such announcement.
Leader of Opposition, Pradipta Naik said, “Due to lockdown, the State government has incurred revenue losses.The timing was not appropriate if the government has increased VAT on petrol and diesel to compensate for the loss. We urge the government to reconsider its decision.”
However, State Transport Minister Padmanabha Behera said that such decision has been taken keeping in view the present situation and there is nothing wrong in it.
Petrol and diesel across the State has become costlier by Rs 3.11 per litre and Rs 1.03 per litre respectively after Odisha government increased the Value Added Tax (VAT) from 26 per cent to 32 per cent on petrol and to 28 per cent on diesel with effect from May 17 (Saturday midnight).
The retail sale price of petrol in capital city Bhubaneswar is now Rs 71.69 per litre and diesel Rs 67.73 per litre while the collection of additional revenue will be utilised for delivery of services in health, education and other social sectors, the government said in a statement.
On May 5, the Centre increased cess and special excise duty of Rs 10 per litre on petrol and Rs 13 per litre of diesel, thus collecting a total tax of Rs 32.98 per litre on petrol and Rs 31.83 per litre on diesel. The Odisha government meanwhile will collect VAT of Rs 16.60 per litre on petrol and Rs 14.34 per litre on diesel after the price revision.
As per sources, Odisha usually gets a revenue of Rs 5500 crore from VAT and the total sales in the State was 15 % since the beginning of the lockdown and increased to 35% following certain relaxation.
It is being said that the State government decided to increase VAT apprehending a loss of Rs 1500 crore from petrol and diesel this year. However, the increase in VAT on petrol and diesel can help the State to reduce the loss by Rs 500 crore, experts said.
Asked about the move, a customer said, "Already the people are sitting at home and their businesses have suffered due to lockdown and now the price hike of petrol and diesel will definitely create problems for us."
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(Edited by Suryakant Jena)
