The opposition Biju Janata Dal (BJD) on Friday called for a reduction in the Value Added Tax (VAT) imposed by the Odisha government on petrol and diesel. The demand follows the Central Government’s recent decision to slash excise duty by Rs 10 per litre, a move the BJD claims should be matched by the state to provide genuine relief to consumers.
BJD spokesperson Dr. Lenin Mohanty, in a press statement, highlighted that the ongoing conflict involving Israel, the United States, and Iran has sparked a global fuel crisis. He noted that this geopolitical tension has created widespread public anxiety regarding the future availability and cost of petrol, diesel, and cooking gas.
While the government has issued assurances that there is no immediate shortage of fuel and essential fuels, Dr. Mohanty argued that these statements have done little to calm the public.
Meanwhile, the regional party alleged that although the excise duty on petrol and diesel has been slashed by Rs 10 per litre, the Central government has not clearly explained the reasons behind this reduction.
“There is a possibility that supply disruptions may lead to a price rise. It is being speculated that the government has reduced excise duty in advance to avoid public backlash in case of price hikes. Ensuring an uninterrupted fuel supply has now become the biggest challenge for the government,” alleged Mohanty.
The BJD pointed out a perceived irony in the current administration’s stance, noting that when the BJP was in the Opposition, it frequently held protests demanding lower VAT on fuel and LPG.
The senior BJD leader also emphasised that when the BJP was in the Opposition in the state, it had repeatedly demanded a reduction in VAT on petrol, diesel, and cooking gas.
“It is also significant that among all states, Odisha imposes one of the highest VAT rates on petrol and diesel. While Odisha levies 28% VAT, Maharashtra and Madhya Pradesh levy 25% each, and Rajasthan levies 19%. Therefore, instead of merely welcoming the Centre’s routine decision to reduce excise duty, the State Government should reduce VAT in the interest of the people of Odisha,” demanded Mohanty.
