Industry seeks power duty cut

In their pre-Budget representation, premier industry bodies of the state have asked the state Finance Minister Vajubhai Vala to cut the power duty by 50 per cent.

The state Budget for 2004-2005 is scheduled to be presented on May 20.

"Gujarat has the highest power tariff in the country. The heavy burden of electricity duty has resulted in the higher cost of production making the trade and industry less competitive.

Even the Gujarat State Electricity Regulatory Commission (GERC) has suggested for a duty cut and making it more rational.

After considering all these factors, we have requested the state finance minister to cut the duty by 50 per cent across the board," Shreyas Pandya, president, Gujarat Chamber of Commerce and Industry (GCCI) told Business Standard.

The Gujarat Electricity Board (GEB) charges 10 per cent duty for the industrial sector, 20 per cent for residential purpose and 45 per cent for the commercial sector.

Though the state government had reduced the duty from a peak of 60 per cent to 45 per cent in the commercial category, industry feels even that is high compared with several other states.