Haryana cabinet okays new ‘panchayat tax’ on electricity, agriculture exempted

The Haryana government on Wednesday decided to levy a two per cent “panchayat tax” on power bills for consumers who fall within the limits of the rural bodies in the state, triggering an opposition demand for its rollback.

Officials said electricity consumption for agriculture and some other categories is exempted from the tax,

An official statement issued here said the state government has decided to levy the tax on use of electricity in order to augment the financial resources of gram panchayats.

But it will not will apply on “consumption of electricity by the government of India or if it is consumed in the construction, maintenance or operation of any railway by the Centre or on consumption by agriculture consumers within the limits of gram panchayats in the state,” it added.