The Odisha government hiked VAT on petrol from 26 per cent to 32 per cent and on diesel from 26 per cent to 28 per cent, with effect from Saturday midnight.

File image for representation only: PTI

In a bid to increase revenue in wake of the coronavirus pandemic, Odisha government Saturday increased the Value Added Tax (VAT) on petrol and diesel.

The Odisha government hiked VAT on petrol from 26 per cent to 32 per cent and on diesel from 26 per cent to 28 per cent, with effect from Saturday midnight.

A government statement said that petrol and diesel across the state will cost more by Rs 3.11 per litre and Rs 1.03 per litre respectively.

Following the revision of VAT rate, petrol in the state will cost Rs 71.69 per litre, against the present rate of Rs 68.58. Similarly, diesel will now cost Rs 67.73 per litre. It was selling at Rs 66.70 under old VAT rate.

Centre on May 6 had increased cess and special excise duty on petrol by Rs.10.00 per litre and on diesel by Rs.13.00 per litre.

The Odisha government press statement stated that the collection of additional revenue would be utilised for delivery of services in health, education and other social sectors.

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