BJD Demands VAT Cut on Fuel Despite Centre’s Excise Duty Relief
Opposition Urges Odisha Government to Slash Fuel VAT Amid Global Crisis and Price Uncertainty
Following the Central Government’s decision to reduce excise duty on petrol and diesel by ₹10 per litre, Mohan Charan Majhi welcomed the move. However, the Opposition Biju Janata Dal (BJD) has urged the State Government to go a step further by reducing VAT on fuel.
BJD Raises Concerns Over Global Fuel Uncertainty
In a press statement, party spokesperson and Media Coordinator Lenin Mohanty highlighted rising public anxiety amid the ongoing geopolitical tensions involving Israel, the United States, and Iran.
He stated that the conflict has triggered fears of a global fuel crisis, leading to uncertainty about the availability of petrol, diesel, and cooking gas. Despite repeated assurances from the government about stable supply, concerns among citizens persist.
Questions Raised on Excise Duty Reduction
Dr. Mohanty questioned the rationale behind the Centre’s sudden reduction in excise duty. He suggested that the move could be a preemptive step to cushion potential backlash in case fuel prices rise due to supply disruptions.
He emphasized that ensuring uninterrupted fuel supply remains a major challenge for the government in the current global scenario.
Call for VAT Reduction in Odisha
The BJD leader said that merely welcoming the Centre’s decision is not sufficient. He urged the state government to take concrete action by reducing VAT on petrol, diesel, and cooking gas to provide real relief to consumers.
Odisha Among Highest VAT-Imposing States
Highlighting comparative tax rates, Dr. Mohanty pointed out that Odisha imposes one of the highest VAT rates on fuel in the country.
- Odisha: 28% VAT
- Maharashtra: 25% VAT
- Madhya Pradesh: 25% VAT
- Rajasthan: 19% VAT
He also recalled that when the BJP was in the Opposition in Odisha, it had consistently demanded a reduction in VAT on fuel.
Appeal for People-Centric Decision
Dr. Mohanty concluded by urging the state government to prioritize public welfare over political statements. He called for an immediate reduction in VAT to ease the financial burden on citizens amid growing economic and global uncertainties.

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