Chandigarh civic body to table electricity tax hike proposal again

MC has proposed an increase of 6 paise per unit

- HT Correspondent

CHANDIGARH: Months after the Aam Aadmi Party (AAP)-led municipal corporation (MC) withdrew the proposal to increase electricity tax, the Bharatiya Janata Party (BJP)-led civic body under mayor Harpreet Kaur Babla is set to reintroduce the proposal in a general house meeting today. If approved, this will increase the cost of electricity for city residents. To address the ongoing financial crisis, the MC has proposed an increase in the electricity tax from the current 10 paise per unit to 16 paise per unit, bringing it in line with Punjab's rates.

As per the agenda prepared by MC officials, the municipal cess on electricity consumption, which has been in place since 2019, currently generates approximately 15-16 crore annually. The increase would raise this revenue to ₹22-23 crore per year. The proposal was approved by the municipal commissioner and signed off by mayor Babla on Monday before being circulated among councillors. The municipal tax in Punjab is charged at 2% on electricity consumption, which translates to 16 paise per unit, while in Haryana, it is 8 paise per unit. Officials justified the hike stating that the MC must explore additional revenue sources to sustain civic services. The AAP and Congress had previously opposed the tax hike.