Bhubaneswar: The Odisha government has hiked the Value Added Tax (VAT) on petrol and diesel, which will come into effect from Saturday midnight.
While VAT on petrol is hiked from 26% to 32% increasing Rs.3.11 per litre, the VAT rate on diesel is increased from 26% to 28% increasing Rs.1.03 per litre.
The retail sale price of petrol at Bhubaneswar will be Rs.71.69 per litre.
The retail sale price of diesel at Bhubaneswar will be Rs.67.73 per litre.
The Government of India has increased cess and special excise duty of Rs.10.00 per litre on petrol and Rs.13.00 per litre of diesel w.e.f 06 May 2020.
The Centre is collecting total tax of Rs.32.98 per litre of petrol and Rs.31.83 per litre of diesel, whereas Government 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 May 2020.
The collection of additional revenue would be utilised for delivery of services in health, education and other social sectors.