Himachal Pradesh Introduces New Cess for Electricity Consumers

The Himachal Pradesh Electricity (Duty) Amendment Bill 2024, introduced by Chief Minister Sukhvinder Singh Sukhu, levies milk and environment cesses on electricity consumption to support farmers and promote a cleaner environment. The cesses are set at various rates depending on consumer type and the bill allows for future increases up to 50% through government notification.

Himachal Pradesh Chief Minister Sukhvinder Singh Sukhu on Monday introduced The Himachal Pradesh Electricity (Duty) Amendment Bill 2024, which seeks to levy both a milk cess and an environment cess on electricity consumption.

The milk cess aims to aid milk producers and uplift farmers, while the environment cess focuses on ensuring a clean environment and boosting the tourism industry.

The milk cess will be set at 10 paise per unit for all consumers except those with zero billing. The environment cess varies: 2 paise per unit for small industrial consumers, 4 paise for medium industrial consumers, 10 paise for large industrial consumers and commercial consumers, Rs 2 per unit for temporary connections and stone crushers, and Rs 6 per unit for charging stations.

The bill also empowers the government to increase both cesses by up to 50% through notification. This legislation seeks to amend the Himachal Pradesh Electricity (Duty) Act, 2009, by inserting sections 3-A for the milk cess and 3-B for the environment cess.

(With inputs from agencies.)