Electricity cess illegal, remove it, Centre tells state - Shimla Now

The Union Ministry of Power has advised all states to promptly remove any kind of additional tax/duty/cess levied on the generation of electricity from all sources.

The ministry said such a tax or cess was illegal and unconstitutional and could be levied by any state on power generation from any source or inter-state supply of electricity under the guise of additional charge or fee.

Himachal, Jammu and Kashmir, Uttarakhand and Sikkim have imposed a cess on power generation. This is the second advisory from the Union Ministry of Power to the states to withdraw the power cess. The ministry had clarified the legal position with regard to the power cess in its letter to the Chief Secretaries of all states and Union Tertitories on April 25 as well.