Chandigarh proposes electricity tax increase to 16 paise

The Chandigarh Municipal Corporation (MC) is planning to discuss a proposal to increase the electricity tax for residents. The current rate is 10 paise per unit, and the proposal suggests raising it to 16 paise per unit. This move comes months after a previous proposal was withdrawn by the Aam Aadmi Party (AAP). The electricity tax increase aims to help the MC manage its financial crisis and match electricity tax rates in Punjab. Currently, the MC earns about ₹ 15-16 crore annually from this tax, but the increase could raise this to ₹ 22-23 crore. The proposal was approved by the municipal commissioner and mayor Harpreet Kaur Babla and will be presented to councillors on Tuesday. Opposition parties, including AAP and Congress, are expected to resist this tax hike. Both parties previously opposed new taxes and promised free electricity and water in their election manifestos. In addition to the electricity tax, the MC is also set to propose an increase in booking charges for community centres. For top-tier centres with modern facilities, the daily charge could rise from ₹ 23,000-44,000 to ₹ 60,000. Charges for other categories, B and C, will also see significant increases. A 50% discount on bookings will still be available for weddings of Below Poverty Line (BPL) girls and funerals. To further boost revenue, the MC is considering a plan to partner with private firms to operate some community centres. It is also looking to reduce costs by transferring four civil dispensaries to the health department and re-hiring previously terminated sanitary inspectors. An agenda will also be introduced to continue garbage collection services in the city.