In a bid to provide some relief to the people following recent hike in petroleum product prices, the Orissa government on Tuesday decided to waive VAT on LPG and kerosene.
"As a measure of relief to the people of the state, we have decided that VAT will be completely waived on LPG and PDS kerosene," chief minister Naveen Patnaik announced.
He said that this was the maximum possible relief the state government could give on these products and noted that the recent hike in prices of petroleum prices had come as a blow to the people, particularly middle and poorer classes.
As far as diesel is concerned, the state government has already reduced the VAT rate to 18% sometime back, which is one of the lowest in the country, he said adding, "It will not be possible for a poor state like Orissa to further reduce this."
He urged the centre to reduce the diesel prices so as to give some relief to the common man.
The decision to waive VAT on LPG and kerosene would put a burden of Rs 40 crore on the state exchequer, official sources said.