Pradhan asks Odisha to reduce VAT on fuel

| | BHUBANESWAR | in Bhubaneswar

Union Minister of Petroleum and Natural Gas Dharmendra Pradhan on Thursday asked the Odisha Government to reduce the 26-per cent Value Added Tax (VAT) it is charging on fuel to bring the prices of diesel and petrol under control.

Addressing a press conference here, Pradhan said, “Both the Centre and the State have roles in controlling fuel price. In October 2017, the Centre cut excise duty by Rs 2. Now it is turn of the State Government to cut the VAT it is collecting on fuel.

If Odisha cuts its VAT like Goa, the price will come down. While Odisha is collecting 26 per cent VAT on fuel, Goa is charging only 12 per cent.”

Explaining the reason for rising fuel prices Pradhan said political turmoil in oil exploring countries like Iran and Venezuela and the uncertainity in international market for the oil price rise.

 “Dollar and rupee imbalance also plays a major role in the hike.The Centre is trying to find a way out to bring the fuel prices under control soon,” he said.

However, in reaction State Finance Minister Sashi Bhushan Behera said, “In Odisha, only 26 per cent VAT on fuel is being collected which is among the lowest in the country.

The Centre’s excise tax is much more than the State’s tax. The Union Minister is making such statements only to pass the buck.”

Notably, while VAT on petrol is 24.56 per cent in Odisha it is 39.78 per cent in Mumbai, 36.14 per cent in Madhya Pradesh, 30.86 per cent in Rajasthan, 16.62 per cent in Goa, and 35.35 per cent in Punjab.

On the other hand, the State Congress activists on the day staged demonstrations for two hours at different fuel outlets in Cuttack protesting the fuel price hike. The activists led by Cuttack Nagar Congress president Mohammed Moquim squatted in front of the petrol pumps demanding immediate reduction in fuel prices. Moquim said they held peaceful protests and tried to senstise the people about the fuel prices.

The petrol pump owners also cooperated with them. On Friday, they would demonstrate peacefully before the petrol pumps on the National Highway. Earlier, on Wednesday the BJD had announced to hold 3-day State-wide protests from May 28 against the spiralling fuel prices.