Industry resents hike in duty on electricity

Lalit Mohan

Dharamsala, September 24

The owners of small-scale industrial units in the state are upset over the decision of the state government to increase electricity duty. The industrial associations of Una district have urged the government to withdraw the hike alleging that it will make industry of Himachal unviable as compared to the adjoining states like Punjab.

The state government increased electricity duty from 1 per cent to 19 per cent from September 1 on the power being supplied to the industry in the state. It also decided to do away with the concessional power being given to new and expanding units in the state. The scheme to give concessional power to new and expanding units in state was brought in by the previous BJP government to attract investment to the state.

Rakesh Kaushal, president of the Haroli block industries association, said representatives of various industrial associations in the state met Industries Minister Harshwardhan Chauhan and raised concerns over electricity duty and other taxes. The minister said the matter would be taken up with the CM. “We are hoping that the state government will withdraw the increase in electricity duty,” he said.

Kaushal said the industry had also expressed concern over other taxes being imposed by the state, including an increase of Rs 6 per litre in diesel price and a recent amendment to include more items under additional goods tax (AGT) and certain goods carried by road (CGCR) tax. Since most of the states in the country have moved on to the GST, additional taxes, if levied, would hit the viability of industry in Himachal.

Kaushal said the state government had also not been able to control the cartelisation of transportation in the state by truck unions. The truck unions charge higher fares from the industry for the goods transported outside and inside the state. To add to it, the increase in the electricity duty for industrial units in the state would definitely impact the viability of the industry, he said.

Other taxes also imposed

The industry has also expressed concern over other taxes being imposed by the state, including increase of Rs 6 per litre in diesel price and recent amendment brought by state to include more items under additional goods tax (AGT) and certain goods carried by road (CGCR) tax. Since most of the states in the country have moved on to GST, additional taxes, if levied, will hit the viability of industry in Himachal.