Just on the eve of Christmas, the Odisha Government has gifted its people with an increase in Value Added Tax (VAT) on petrol and diesel prices, resulting in a steep hike in fuel prices even though the centre has reduced the prices many times in the recent months, thanks to a decline in global crude oil prices.
The Odisha Cabinet headed by Chief Minister Naveen Patnaik, has decided to increase the VAT on petrol and diesel by 3%. As a result, petrol will now become costlier by Rs 1.49 per litre in Odisha. The diesel prices will go up by Rs 1.33 per litre in the state.
Earlier in June 2014, the government had raised the VAT on petrol and diesel from 18 per cent to 20 per cent apart from raising the tax rate on liquor from 20 per cent to 25 per cent to generate additional revenue of Rs 375 crore per annum.