Bhubaneswar, Jan 5: The State Government increased Value Added Tax (VAT) on petrol and diesel by 3 per cent from today.
The Finance Department issued a notification to this effect on Monday
The VAT on petrol and diesel increased from present 23 per cent to 26 per cent.
The State is now suffering a loss of revenue of Rs 470 crore per annum due to decrease in the prices of the two fuels. To recover this loss, the Government has gone for a VAT hike, sources said.
The increased VAT would be enforceable from today.
