less than 24 hours after the presentation of the State Budget for 2014-15 in the Assembly proposing a hike in the tax rates on petrol and diesel by 2 per cent, the State Government on Wednesday issued a formal notification to implement the new rates with immediate effect even though the Budget is yet to be passed in the legislature.
With the increase in taxes, the prices of petrol per litre will now be Rs 71.89 and diesel Rs 61.65 per litre in Bhubaneswar.
Finance Minister Pradip Kumar Amat in his Budget had proposed to raise the tax rates on petrol and diesel from 18 per cent to 20 per cent to augment the State’s revenue.
Amat, who also proposed a levy of higher tax on liquor form 20 per cent to 25 per cent, had said both the measures would fetch additional revenue of Rs 375 crore per annum. Finance Secretary UN Behera has claimed that the prices of petrol and diesel in Odisha are lower than the prevailing prices in most other States.
The main Opposition Congress on Wednesday staged a walkout in the Assembly opposing the increase in the VAT on petrol and diesel by the BJD Government.
The BJP also accused the BJD of betraying the confidence of the people.Food Supplies and Consumer Welfare Minister Sanjay Dasburma rejected the Opposition’s demand for a rollback of the hike in the oil prices.