Bhubaneswar: The prices of petrol and diesel will reduce in Odisha from midnight today as the State Government has slashed the Value Added Tax (VAT) on petrol and diesel.
In order to provide relief to general public from the rising fuel prices, Chief Minister Naveen Patnaik has announced reduction of Vat of Rs 3/each on petrol and diesel.
It will be applicable from midnight of November 5.
This is over and above the reduction in excise duty announced by Government of India.
In view of this reduction, the loss of VAT revenue to state exchequer will be to the tune of Rs 1400 Cr. per annum. This is in addition to loss in VAT collection @ Rs. 1.6/ litre on petrol and Rs. 2.8/ litre on diesel, total amounting to Rs 700 Cr., which the state is likely to incur in view of Excise duty reduction by Government of India.