E-Paper
PSPCL yet to return ₹30 crore MC tax to Mohali civic body
A 2% MC tax is levied on electricity from houses falling within MC limits, and PSPCL collects it on the civic body’s behalf
Facing a financial crunch, the Mohali municipal corporation (MC) has written to the Punjab State Power Corporation Limited (PSPCL) asking them to pay up ₹30 crore collected as MC tax by them since November 2017.
The Punjab government imposes 2% MC tax in urban areas, on all categories of consumers, except farmers. This tax is collected by PSPCL and they are expected to pay the same to the civic body. Despite repeated letters written by the officials of the MC, PSPCL has failed to make the payment.
A senior official of the MC said that the civic body, in order to generate revenue, had imposed 2% MC tax on electricity from houses falling within the MC limits, and PSPCL was to collect the same on its behalf in the bill.
“Only once in 2019, they paid ₹3 crore to the MC. However, the collection is much higher. As per the estimate, the collection should be more than ₹30 crore from the area falling under Mohali MC limits, and the exact data is with the PSPCL,” added the senior MC official.
He said, “Repeated letters have been written to PSPCL, but they have failed to pay up. The excuse they give is pending dues for payment of electricity bills. However, there are no pending bills of MC Mohali.”
Mayor Amarjit Singh Jeeti Sidhu has once again shot off a letter asking PSPCL to pay the dues. “The MC tax is one of the means of generating revenue, but the PSPCL is not paying up. This money can be utilised for development works in the city, so I have written to PSPCL to pay our dues.”
He added, “As per our estimate the PSPCL is to pay more than ₹30 crore to MC Mohali. They did once pay around ₹3 crore, which they can deduct from ₹30 crore.”
