Air-conditioners may cost more in Delhi

The Delhi government is considering increase in tax on air-conditioners, which are selling like hot-cakes with mercury sky-rocketing. “The sale of air-conditioners has increased by around 20-25% in last 15 days or so,” said Gaurav Kapoor, a wholesaler seller of air-conditioners in north Delhi. Chetan Chauhan reports.

Air-conditioners in Delhi may soon be costlier.

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The Delhi government is considering increase in tax on air-conditioners, which are selling like hot-cakes with mercury sky-rocketing. “The sale of air-conditioners has increased by around 20-25% in last 15 days or so,” said Gaurav Kapoor, a wholesaler seller of air-conditioners in north Delhi.

This was indicated by Delhi chief minister Sheila Dikshit at the annual plan meeting for the city at the Planning Commission on Friday. Sources said the CM said that there was a huge spurt in sales of air-conditioners whereas that of inverters was dipping as power supply has become more reliable.

To off-set the tax revenue loss from fall in sale of inverters the Delhi government was considering hike in tax for air-conditioners. The value added tax (VAT) --- contributes 64% to total revenue collection in Delhi --- on air-conditioners is 12.5%.

The increasing sale of air-conditioners, considered energy guzzlers, is an apparent cause for demand for power during night hours being higher than during day time. On average Delhi consumed over 5,500 MW every day this summer, more than half of which was during night hours.

The commission approved annual plan of Rs 16,626 crore for financial year 2013-14 as compared to Rs 15,139 crore for the last financial year. Dikshit outlined the proposals for the crucial election year for Delhi assembly and felt that the election code of conduct may slow down implementation of many of the plan. Delhi elections are scheduled for November-December this year.