Cash-strapped Himachal cuts power subsidy, hikes vehicle tax

Shimla: The cash-strapped Himachal Pradesh (HP) authorities has come down arduous at customers by rising car registration charges and likewise slashed electrical energy subsidy to shore up its income amid the coronavirus illness (Covid-19) outbreak.

These choices had been taken throughout a state cupboard assembly on Thursday.

The registration charges for bikes have been elevated from the present 2.5%-4% to 7%-10%.

The new registration price for a motorbike that prices as much as Rs 50,000 can be 7%; 8% for above Rs 50,000, and as much as Rs 2 lakh; and 10% for above Rs 2 lakh.

Similarly, the registration price for a automobile has been elevated from 8% to 10%.

The state authorities will cost 100% of the composite price from small contract carriers coming to HP with riders from exterior states.

The 15-day waiver for contract carriers, who paid the tax for a month at one go, has additionally been achieved away with.

The state authorities has determined to slash the Rs 480-crore subsidy for the Himachal Pradesh State Electricity Board (HPSEB) by Rs 110 crore in a bid to present aid to these customers, whose month-to-month consumption is beneath 125 items.

Government knowledge confirmed that 18% of the subsidy went to 11 lakh customers, who eat lower than 125 items of electrical energy per thirty days, and the remainder to a different 9 lakh customers, whose consumption is over 125 items in a month.

There can be no change within the energy payments for customers utilizing electrical energy lower than 125 items a month.

However, those that use energy between 125 and 200 items a month will see a hike between Rs 40 and Rs 113 of their month-to-month electrical energy payments.

Similarly, these consuming between 201 to 300 items of energy will see a rise between Rs 115 and Rs 200 of their month-to-month payments.

The consumption sample between Rs 301 and 400 electrical energy items will entail a rise within the month-to-month invoice between Rs 200 and Rs 290. A client has to cough up between Rs 300 and Rs 400 extra a month, if his consumption is discovered to be 401 items or above.

In HP, a client pays Rs 2.62 for a unit of energy, as in comparison with Rs 6.59 and Rs 3.27 in neighbouring Punjab and Uttarakhand, respectively.

The state authorities has additionally allowed working of buses with 100% of their capability, however refused to extend fares.

Earlier, non-public bus operators had demanded that the minimal fare be doubled to Rs 10 from Rs 5 due to 60% occupancy as a consequence of social distancing norms owing to the viral outbreak.