Amid councillors’ dissent, Chandigarh mayor scraps proposal to hike power cess
A day after councillors of the Aam Aadmi Party (AAP) and the Congress disagreed to support municipal corporation’s (MC) proposal of hiking power cess in Chandigarh, city mayor Kuldeep Kumar Dhalor withdrew the proposal on Thursday.
If approved, the agenda would have made electricity more expensive for consumers.
In a bid to generate more revenue amid the ongoing financial crisis, MC had proposed to increase electricity tax from 10 paise per unit to 16 paise per unit, on the lines of Punjab.
The municipal cess on power is imposed through the bills sent to power consumers by the UT electricity department. For example, if the UT administration charges ₹3 per unit, the amount currently billed to consumers is ₹3.10, including 10 paise municipal cess. The MC proposal, if cleared, would have increased this charge to ₹3.16 per unit.
The agenda was scheduled 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.
“Since both the AAP and our alliance party Congress do not wish to support the proposal, I decided to withdraw it. The agenda will not be discussed in the House,” the mayor said.
It is worth mentioning that after municipal commissioner’s approval, every agenda is signed and approved by the mayor before presenting it in the House. The mayor had, on Wednesday, given his approval to table the proposal and the agenda copies were distributed among councillors.
But the AAP and the Congress raised objections as both parties, in their Lok Sabha election manifesto, had promised 20,000 litres of free water to every household per month, along with 300 units of free power to those with a monthly income less than ₹20,000. The manifesto also promised no new taxes.
In the agenda, civic body officials had 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 corporation earns approximately ₹15-16 crore every year. Municipal tax in the neighbouring state Punjab is being charged 2% on electricity consumption, which approximately comes out to be 16 paise per unit. In Haryana, it is being charged 8 paise per unit.”
“Since MC is experiencing a financial crunch, therefore, it is exploring sources of revenue generation. By following Punjab pattern, MC’s income will enhance from ₹15-16 crore to ₹22-23 crore per annum,” they had added.
MP Tewari also against proposal: Congress
In an official statement, local Congress’ chief spokesperson Rajiv Sharma said the party and MP Manish Tewari unflinchingly stood by their solemn commitment made during the 2024 Lok Sabha elections that no new taxes will be imposed on city residents. He said on the contrary, residents needed some respite now after the BJP-led MC mercilessly imposed back-breaking taxes on people during their eight-year tenure till 2023.
Stressing upon the need to augment the resources of the corporation by ensuring effective tax compliance, the Congress spokesperson alleged that the government buildings in Chandigarh owed hundreds of crores of rupees to the civic body. The financial condition of MC will improve significantly if the states, UT administration and public authorities pay even half their tax arrears, Sharma added.
