Before 2007 state elections, Gujarat Finance Minister Vaju Vala had offered relief on electricity duty to citizens. But, soon after BJP came back to power, the duty was raised to such extent that it left many other states far behind. In 2007 Budget, Vala reduced electricity duty from 15% to 10% for residences, institutions and hostels in rural areas.
However, it is 20% or 96 paise per unit at present, which is double when compared to the cut proposed five years back. Even if compared with other NDA or BJP-ruled states, Gujarat is the runaway winner in this category with the highest electricity duty.
Once again, it is an election year and so will Vala, who will present the state budget for the record 18th time on Friday, melt down and provide the industries a much needed relief?
The Gujarat Chamber of Commerce & Industry (GCCI) said that Gujarat government charges electricity duty at ad valorem rate on total amount of bill that is in rupees term and percentage. “This should be charged only on electricity consumption, i.e. units consumed by consumer. In Gujarat, electricity duty is very high whereas in other states, it is much lower,” said Mahendra Patel, president of GCCI, in chamber’s budget proposal. The chamber has urged state government to bring down duty to the level of other states.
"At present, state electricity duty income is Rs3,500 crore and whenever tariff is hiked, duty automatically jumps," said Patel. Apart from GCCI, even other industrialists are demanding cut in electricity duty. There is a long wish list but we not expecting any changes from Vala this year, said CMD of Rasna Pvt Ltd, Piruz Khambatta. "Vat rates are the highest. Electricity duty is highest. But we don't expect Vala to reduce either of them," he said.
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
)
){kind=small}
){kind=small}
)
)
)
)
)
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}