ACs may cost more in Delhi, tax hike likely | delhi | Hindustan Times
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ACs may cost more in Delhi, tax hike likely

delhi Updated: Jun 01, 2013 00:24 IST
Chetan Chauhan
Chetan Chauhan
Hindustantimes.com
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After 45°C temperatures and long power cuts, your summer this year is set to become worse with the Delhi government turning up the heat to burn a hole in your pocket.

It is considering increasing the value-added tax (VAT) on air-conditioners, whose sales have skyrocketed in step with the mercury.

According to sources, at the annual meeting of the Planning Commission for the Capital on Friday, the CM said that AC sales are on the rise while inverters are seeing a dip as power supply becomes more reliable. The government is likely to hike the VAT on ACs to offset the tax revenue loss resulting from the fall in the sale of inverters.

At present, the VAT on ACs is 12.5% of the purchase price.

Even as Delhi continues to reel under long blackouts, the panel’s deputy chairperson Montek Singh Ahluwalia expressed satisfaction over the power situation.

The commission approved a plan of Rs. 16,626 crore for 2013-14 for Delhi, compared to Rs. 15,139 crore for the last financial year.