Assam Government proposed to replace fixed "electricity duty" of 20 paise per unit

Assam Government Monday proposed to replace fixed "electricity duty" of 20 paise per unit with an ad-valorem rate of five percent on overall energy charge, having a scope to further increase it to 10 percent. Introducing the Assam Electricity Duty (Amendment) Bill, 2018, Finance Minister Himanta Biswa Sarma said the government plans to have the electricity duty at an ad-valorem duty of five percent. "... to empower the state government to enhance electricity duty in future with an upper ceiling of 10 percent of the aggregate value of energy charges and fixed charges," he added.

Currently, "electricity duty" is charged at 20 paise per unit and there is no scope to raise it beyond this amount. Once the bill is passed by the Assembly and notified by the government, this step will effectively increase the electricity bill of the consumers.