Odisha Govt to lose over Rs 2,000 cr on Tax deferment to Indian Oil Corporation

The State Government on Tuesday said, it would lose over Rs 2,000 crore in the 2016-17 financial year due to deferment of VAT to the Indian Oil Corporation’s Paradip Oil Refinery.

The loss to the state exchequer will be over 11% of the commercial tax target of Rs 17,500 crore in the current financial year.

In this regard, the state government has requested the Union Ministry of Petroleum and Natural Gas to reconsider the VAT deferment.

Notably, IOCL has commissioned the 15 million tonne crude oil refinery at Paradip at a cost of Rs 34,555 crore.