BJD Urges Odisha Government to Reduce VAT on Fuel Following Central Excise Cut

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Narendra Jijhontiya

BJD Urges Odisha Government to Reduce VAT on Fuel Following Central Excise Cut

Bhubaneswar, March 28: Following the central government’s decision to reduce excise duty on petrol and diesel by ₹10 per liter, the main opposition party, Biju Janata Dal (BJD), has called on the Odisha government to lower the VAT on fuel as well. The BJD pointed out that when the ruling BJP was in opposition, it had made similar demands.

In a press statement, BJD spokesperson Dr. Lenin Mohanty stated that ongoing conflicts among Israel, the United States, and Iran have led to a global fuel crisis, creating uncertainty regarding the availability of petrol, diesel, and cooking gas for the public.

He further noted that despite the government’s repeated assurances that there is no crisis concerning fuel and essential commodities, these reassurances have not alleviated public concerns.

Meanwhile, the regional party accused the central government of failing to clearly explain the reasons behind the ₹10 per liter excise duty reduction on petrol and diesel.

Mohanty alleged, “There is a possibility that prices may rise due to supply disruptions. Speculations suggest that the government preemptively reduced excise duty to avoid public anger in case of price hikes. Ensuring an uninterrupted fuel supply has now become the biggest challenge for the government.”

He added that if the Chief Minister is genuinely committed to ensuring a smooth supply of petrol, diesel, and cooking gas for the state’s residents, the state government should reduce the VAT imposed.

The senior BJD leader emphasized that when the BJP was in opposition in the state, it repeatedly demanded a reduction in VAT on petrol, diesel, and cooking gas.

Mohanty insisted, “It is also crucial to note that Odisha imposes one of the highest VAT rates on petrol and diesel among all states. While Odisha charges 28% VAT, Maharashtra and Madhya Pradesh charge 25%, and Rajasthan charges 19%. Therefore, instead of merely welcoming the central government’s decision to cut excise duty, the state government should reduce VAT in the interest of the people of Odisha.”

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