Power bills in Punjab’s urban areas to go up by 2%
Punjab cabinet on Monday announced subsidised electricity tariff for industry at Rs 5 a unit from November 1. While on the other hand, the state government notified imposition of municipal tax at 2% on consumption, use or sale of electricity in urban areas from the same date. Congress government after coming to power in March presented a no-new-tax budget in June, and the octroi on electricity, which was 10 paise a unit, was also abolished. Octroi used to fetch the local bodies department Rs 120 crore annually. Now, the department, headed by cabinet minister Navjot Singh Sidhu is likely to get up to Rs 300 crore a year from this tax. The state utilities sell electricity worth Rs 25,000 crore a year, of which the free supply to farming sector is Rs 7,000 crore that the government pays. “Billing in urban areas is Rs 12,000 crore or more, thus the department will fetch anywhere between Rs 250 crore to 300 crore,” said a power engineer. Additional chief secretary, local bodies, Satish Chandra claimed that the burden will not be more than the Rs 120 which the now-abolished octroi used to fetch. The notification was issued exercising powers under section 62(A)(1) of the Punjab Municipal Act, 1911. -PTC News
