The move is aimed at reducing the cost of electricity for consumers and ensuring that they get uninterrupted power supply. The Power Ministry has also highlighted that such taxes and levies are against the spirit of the Electricity Act, which envisages affordable and reliable power supply for all.
The Ministry has urged state governments to take immediate action to withdraw any such taxes or levies on electricity generation and has assured them that the Centre will provide all necessary support to help them implement the decision. It has also emphasized the need for a coordinated approach to resolve the issue of high electricity tariffs in the country.
The Power Ministry’s move has been welcomed by industry experts and consumer groups, who have long been advocating for a reduction in electricity tariffs. They have also called for a review of other taxes and levies on electricity, such as transmission and distribution charges, to ensure that consumers get the benefit of lower tariffs.
The withdrawal of taxes on the generation of electricity is expected to have a significant impact on the power sector, as it will reduce the cost of power generation, making it more affordable for consumers. It is also expected to encourage the development of renewable energy sources, which are currently subject to high taxes and levies.
Overall, the Power Ministry’s decision is a welcome step towards providing affordable and reliable power supply for all, and it is hoped that state governments will act swiftly to implement the decision.
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Power Ministry asks states to withdraw any tax on generation of electricity
By tirupatinews
