BJD Calls for VAT Reduction on Fuel After Central Excise Duty Cut
Synopsis
In response to the Central Government's excise duty reduction, the BJD urges the Odisha government to lower fuel VAT. This demand echoes past BJP requests for similar reductions, highlighting the need for clarity amid a global fuel crisis.
Key Takeaways
The Central Government has cut excise duty on fuel by Rs 10 per litre.
BJD calls for a reduction in Odisha's VAT on fuel.
The ongoing global fuel crisis is raising public concerns.
Odisha has one of the highest VAT rates on fuel in India.
BJD's stance reflects past demands made by the BJP when they were in opposition.
Bhubaneswar, March 27 (NationPress) Following the Central Government's recent announcement to cut excise duty on petrol and diesel by Rs 10 per litre, the principal opposition party, Biju Janata Dal (BJD), has called upon the Odisha government to lower the VAT on fuel. This demand highlights a similar stance taken by the ruling BJP when they were in opposition.
BJD spokesperson Dr. Lenin Mohanty stated in a press release that the ongoing conflict involving Israel, the United States, and Iran has triggered a global fuel crisis, causing public anxiety surrounding the supply of petrol, diesel, and cooking gas.
Despite government assurances to the public that there is no fuel crisis, these claims have not alleviated concerns, he noted.
Moreover, the regional party pointed out that even though the excise duty on fuel has been reduced by Rs 10 per litre, the Central government has not provided clear justifications for this move.
“There are fears that disruptions in supply could result in price increases. It seems the government has preemptively lowered excise duty to mitigate potential public dissent in the event of price hikes. Maintaining a steady fuel supply now poses a significant challenge to the government,” Mohanty asserted.
He urged the Chief Minister to genuinely commit to ensuring a reliable supply of petrol, diesel, and cooking gas by reducing the state-imposed VAT.
Additionally, Mohanty pointed out that when the BJP was in opposition, they consistently advocated for a reduction in VAT on these fuels.
“It is noteworthy that Odisha has one of the highest VAT rates on fuel in the country. While Odisha imposes a VAT of 28%, states like Maharashtra and Madhya Pradesh charge 25%, and Rajasthan imposes 19%. Instead of merely applauding the Centre's standard decision to cut excise duty, the State Government should proactively reduce VAT for the benefit of the people of Odisha,” Mohanty concluded.
Point of View
Where the opposition is leveraging recent government decisions to advocate for public interests. The BJD’s call for VAT reduction highlights the complexities of fuel pricing amidst global tensions and local governance.
NationPress
24 Jul 2026
Frequently Asked Questions
What is the recent excise duty change by the Central Government?
The Central Government has reduced excise duty on petrol and diesel by Rs 10 per litre.
Why is the BJD demanding a VAT reduction?
The BJD is advocating for a VAT reduction to alleviate fuel costs for citizens, especially in light of the recent excise duty cut.
What impact does the global fuel crisis have on India?
The global fuel crisis has created uncertainty regarding the availability and pricing of fuel in India, causing public concerns.
How does Odisha's VAT on fuel compare to other states?
Odisha's VAT on fuel is among the highest in India at 28%, compared to Maharashtra and Madhya Pradesh at 25%, and Rajasthan at 19%.
What are the implications of the BJD's demands?
The BJD's demands could lead to a revision of VAT rates, impacting fuel prices and public sentiment regarding the government's handling of the fuel crisis.
