VAT on Petrol & Diesel Hiked In Odisha

Bhubaneswar: Petrol and diesel across the State will now cost more by Rs 3.11 per litre and Rs 1.03 per litre respectively as Odisha government has 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).

According to a government statement, the retail sale price of petrol in capital city Bhubaneswar will be Rs 71.69 per litre and diesel Rs 67.73 per litre from May 17. The collection of additional revenue would be utilised for delivery of services in health, education and other social sectors, the statement said.

VAT on diesel/petrol increased in #Odisha

Petrol - 26% to 32% resulting in Rs 3.11/litre rise
Diesel - 26% to 28% resulting in Rs.1.03/litre rise

Retail prices in Bhubaneswar
Petrol - Rs 71.69 /litre
Diesel - Rs 67.73 /litre

(Rates effective from May 17, 2020 )

— OTV (@otvnews) May 16, 2020

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, while the Odisha government will collect VAT of Rs 16.60 per litre on petrol and Rs 14.34 per litre on diesel after the price revision.

The State government has claimed that the retail sale price of petrol in Bhubaneswar will be less than most other cities in India and the retail sale price of diesel in Bhubaneswar will be less than or at par with other cities in India after the VAT increase.

It is pertinent to mention that the last revision of VAT rate on petrol and diesel was made on January 5, 2016 raising from 23 per cent to 26 per cent.

Meanwhile, States of Assam, Nagaland, Maharastra, Karnataka, Rajasthan, Haryana, Tamilnadu and Delhi also increased VAT/Sales Tax on petrol and diesel during March, April, May 2020.

The retail sale price of petrol at Bhopal (MP) is Rs 77.58 per litre, in Mumbai (Maharastra) it is Rs 76.31 per litre, in Kolkata (West Bengal) it is Rs 73.30 per litre, in Hyderabad (Telangana) it is Rs 73.97 per litre, in Visakhapatnan (AP) it is Rs 73.55 per litre , Chennai (Tamilnadu) Rs 75.54 per litre, Bangalore (Karnataka) Rs 73.55 per litre, Jaipur (Rajasthan) Rs 76.70 per litre, Patna (Bihar) Rs 74.25 per litre and at Guwahati (Assam) it is Rs 77.46 per litre. Thus the retail sale price of petrol at Bhubaneswar would considerably be less than most other cities in India as on May 17.

On the other hand, the retail sale price of diesel at Bhopal is Rs 68.29 per litre, at Mumbai Rs 66.21 per litre, at Hyderabad is Rs 67.82 per litre, at Visakhapatnan Rs.67.49 per litre, Chennai Rs 68.22 per litre, Delhi Rs 69.39 per litre, Jaipur Rs 69.82 per litre and at Guwahati it is Rs.70.50 per litre.