BENGALURU: H D Kumaraswamy’s maiden funds has given both domestic and commercial customers an ‘electrical shock’ because it seeks to hike tax on intake of electrical energy.
The funds proposes to hike tax on intake for general customers (together with both domestic and industrial customers) from the existing 6.5% to nine%. The hike is double for captive power because the tax is ready to increase from 10 paise consistent with unit to 20 paise consistent with unit.
The state govt levies tax at the quantity indexed in the electrical energy bill apart from mounted fees that varies for various slabs. If, for instance, your intake is Rs 100, you pay Rs 106 underneath the existing tax construction. If the funds is handed in the meeting, you'll have to pay Rs 109.
The proposal comes as a double whammy for customers because the Karnataka Electricity Regulatory Commission (KERC) had introduced a median energy tariff hike of 5.three% in May. This resulted in a median building up of 38 paisa consistent with unit throughout categories.
It’s a fair larger bill for industries and industrial institutions because the tax hike on captive power comes at the side of the tax building up on diesel. Captive power is electrical energy generated through institutions on their very own using gas of their selection. Most industries rely on diesel, which is ready to grow to be more expensive through Rs 1.12 consistent with litre, pushing up input prices.
Domain professionals say the tax hike can have a cascading effect, leading to higher prices of commodities like cement, steel, bulk medication and others.
“We cannot see the proposed hike on diesel and electrical energy one at a time, especially for industries as both are inputs for them,” mentioned M G Prabhakar, member of KERC’s advisory committee. “The hike can have a cascading effect at the prices of commodities.”
The funds proposes to hike tax on intake for general customers (together with both domestic and industrial customers) from the existing 6.5% to nine%. The hike is double for captive power because the tax is ready to increase from 10 paise consistent with unit to 20 paise consistent with unit.
The state govt levies tax at the quantity indexed in the electrical energy bill apart from mounted fees that varies for various slabs. If, for instance, your intake is Rs 100, you pay Rs 106 underneath the existing tax construction. If the funds is handed in the meeting, you'll have to pay Rs 109.
The proposal comes as a double whammy for customers because the Karnataka Electricity Regulatory Commission (KERC) had introduced a median energy tariff hike of 5.three% in May. This resulted in a median building up of 38 paisa consistent with unit throughout categories.
It’s a fair larger bill for industries and industrial institutions because the tax hike on captive power comes at the side of the tax building up on diesel. Captive power is electrical energy generated through institutions on their very own using gas of their selection. Most industries rely on diesel, which is ready to grow to be more expensive through Rs 1.12 consistent with litre, pushing up input prices.
Domain professionals say the tax hike can have a cascading effect, leading to higher prices of commodities like cement, steel, bulk medication and others.
“We cannot see the proposed hike on diesel and electrical energy one at a time, especially for industries as both are inputs for them,” mentioned M G Prabhakar, member of KERC’s advisory committee. “The hike can have a cascading effect at the prices of commodities.”
K'taka budget: Power consumers in for nasty shock
![K'taka budget: Power consumers in for nasty shock]()
Reviewed by Kailash
on
July 05, 2018
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