Himachal govt proposes electricity tax to support dairy farmers, boost tourism

Himachal Pradesh Chief Minister Sukhvinder Singh Sukhu on Monday introduced the Himachal Pradesh Electricity (Tax) Amendment Bill, 2024, which seeks to impose a milk tax and an environmental tax on electricity consumption.

The milk tax aims to strengthen milk producers and improve the situation of farmers, and the environmental tax aims to achieve a clean environment and boost the tourism industry.

The tax on milk would be 10 paise per unit for all consumers except zero-billed consumers.

The environmental cess would be 2 paise per unit for small industrial power consumption, 4 paise for medium industrial power consumption, 10 paise per unit for large industrial power consumption and commercial consumers, Rs 2 per unit for temporary connections and stone crushers and Rs 6 per unit at charging station.

The Bill further empowers the government to increase the tax through notification subject to a maximum of 50% at a time. The Bill seeks to amend the Himachal Pradesh Electricity (Tax) Act, 2009 with the insertion of sections 3-A for milk tax and 3-B for environment tax.

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