Chandigarh Administration doubles cow cess on vehicle registration and power consumption
PTC Web Desk: Chandigarh residents will now have to pay more for vehicle registration and electricity usage, as the administration has doubled the cow cess. The cess on the registration of four-wheelers has been increased from Rs 500 to Rs 1,000. Similarly, the surcharge on electricity consumption has risen from 2 paise per unit to 6 paise per unit.
The notification has been issued under Section 7 of the Punjab Prohibition of Cow Slaughter Act, 1955, which is applicable in Chandigarh as well. Though the cess is collected by various departments, the entire amount is credited to the Chandigarh Municipal Corporation. This move, however, is not without controversy.
The Municipal Corporation has previously raised concerns that its share in the cess revenue collected by the Excise Department is being reduced. In 2022–23, the corporation received Rs 20.25 crore, which drastically dropped to just Rs 2.92 crore in 2024–25.
The Regional Licensing Authority (RLA) will collect cess on private four-wheeler registrations. The State Transport Authority (STA) will handle cess collection for commercial vehicles. For electricity bills, the Superintending Engineer, Electricity (Operation) Circle, will implement the revised cess, following a resolution passed in March by the Municipal Corporation.
The Excise and Taxation Department also plays a role in collection under the Excise Policy. Under this, cow cess is levied as follows:
Rs 0.50 on a 750 ml bottle of country liquor
Rs 0.50 on a 650 ml bottle of beer
Re 1 on a 750 ml or 700 ml bottle of whisky
These amounts are to be deposited by wholesale vendors into a designated bank account of the Municipal Corporation.
With four separate departments—STA, RLA, Electricity, and Excise—involved in collection, the cow cess has become a multi-source revenue stream for the city’s civic body, even as concerns grow over transparency and equitable distribution.
- With inputs from agencies
