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Monday, Jun 16, 2008
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Marginal rise in power tariff

Special Correspondent

KSEB decides to collect duty on full amount

A.K. Balan says he is not aware of the decision.

THIRUVANANTHAPURAM: Power tariffs will go up marginally in the State with the Kerala State Electricity Board’s (KSEB) decision to collect electricity duty on the whole amount billed as electricity charges.

The increase would be about Rs.4 for a consumer using 100 units of electricity a month.

Customers had been exempted from paying the duty on the difference between the old tariff and revised tariff in 2002 by a government order. But subsequently, powers for revision of the tariffs had come under the State Electricity Regulatory Commission. When the tariff was fixed in 2007, nothing was said about the duty which is payable under the Electricity Duty Act.

As per the Act, high tension consumers pay 10 paise a unit of electricity as duty. Low tension consumers, on the other hand, are required to pay 10 per cent duty on the billed amount.

The Board decided to collect the duty for the whole billed amount now in view of audit objections. The duty is payable to the government as a statutory requirement.

Will study issue: Balan

PTI reports from Palakkad: Electricity Minister A.K. Balan said here on Sunday that the government would examine the reported decision of the KSEB to charge a certain portion of the tax on power tariff which was waived by the previous United Democratic Front (UDF) government when it hiked power rates. The government was not aware whether the KSEB had taken such a decision, he told reporters when asked about reports in a section of the media about the KSEB’s move. In the prevailing circumstances, the tax concession needed to be reviewed.

Move illegal: Chandy

Staff Reporter writes from Kochi: Leader of the Opposition Oommen Chandy said here on Sunday that the KSEB’s reported move to reintroduce duty on power charges was illegal.

He said the UDF government had withdrawn the duty as a relief measure to the people. It was up to the State government and not the Board to decide on such issues, he said.

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