Cash-strapped Chandigarh MC proposes power cess hike

Chandigarh MC’s proposal of increasing electricity tax from 10 paise per unit to 16 paise per unit, on the lines of Punjab, will be discussed for approval on November 23

The Aam Aadmi Party (AAP)-led Chandigarh Municipal Corporation (MC) is proposing to increase in electricity tax/cess in the city, making electricity more expensive for consumers just few months after party’s alliance partner Congress had promised ‘free electricity’.

Municipal commissioner Amit Kumar on Tuesday reviewed the financial status of Chandigarh MC, including revenue and expenditure for the last five years. (HT Photo)

In a bid to generate more revenue amid the ongoing financial crisis, the civic body proposed to increase electricity tax from 10 paise per unit to 16 paise per unit, on the similar lines of electricity tax in Punjab. The agenda will be tabled for discussion and approval during the upcoming general House meeting on November 23, which will also be attended by Punjab governor and UT administrator Gulab Chand Kataria.

However, in its Lok Sabha election manifesto, Congress and AAP had promised free 20,000 litres of water to every household every month in its poll manifesto, along with 300 units of free power to those with monthly income less than ₹20,000 and no new taxes.

In the agenda, MC officials said, “The MC imposed municipal cess on electricity consumption in the MC limit at 10 paise per unit in the year 2019 (notification dated December 10, 2019). The MC earns approximately ₹15-16 crore every year. The municipal tax in neighbouring states, that is Punjab is being charged 2% on electricity consumption, which approximately comes out to be 16 paise per unit, and in the state of Haryana, it is being charged 8 paise per unit.”

Not discussed with us: Cong

Congress president HS Lucky said, “We stick to our promise and the Congress is opposed to any hike in any tax. We will oppose it in the MC House.”

Congress councillor Gupreet Singh Gabi said, “The Congress councillors and leaders were not consulted before drafting this proposal. We will discuss the matter in pre-House meeting and will go by party’s decision.”

AAP’s Chandigarh co-in-charge SS Ahluwalia said, “The agenda has been brought by MC officials and not by AAP. We stick to our demands of free electricity and water.”

Mayor Kuldeep Kumar Dhalor could not be contacted despite repeated attempts.

Meanwhile, municipal commissioner Amit Kumar on Tuesday reviewed the financial status of MC, including revenue and expenditure for the last five years. During the meeting, the commissioner reviewed the receipts (revenue) of different wings. He also reviewed MC’s expenditure and directed the officials concerned to explore alternative solutions to curtail the expenditure. He directed them to prepare a detailed report on all receipts within a week for further discussion.