PSPCL yet to return ₹30 crore MC tax to Mohali civic body

Facing a financial crunch, the Mohali municipal corporation (MC) has written to the Punjab State Power Corporation Limited (PSPCL) asking them to pay up ₹30 crore collected as MC tax by them since November 2017.

The Punjab government imposes 2% MC tax in urban areas, on all categories of consumers, except farmers. This tax is collected by PSPCL and they are expected to pay the same to the civic body. Despite repeated letters written by the officials of the MC, PSPCL has failed to make the payment.

A senior official of the MC said that the civic body, in order to generate revenue, had imposed 2% MC tax on electricity from houses falling within the MC limits, and PSPCL was to collect the same on its behalf in the bill.

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