No tax on agricultural electricity in Gujarat since 2004: Finance Minister

In addition, services such as hospitals, dispensaries running on ‘no profit’ basis, local self-government institutions established by the state or central government, public street lights operated by notified areas and cantonment boards, public water works, public gardens, zoos, public museums, public drainage and sewerage have been exempted from electricity tax, he said.

To boost industries, the new units set up in Special Economic Zones (SEZ) have been exempted from electricity tax for the first 10 years. In addition, new manufacturing industries also get the benefit of special exemption from electricity tax for the first five years. To promote the tourism sector, 100 per cent tax exemption has been given to units approved under the Tourism Policy for the first five years, he said.

Giving detailed information about the electricity tax rates in residential areas, the Finance Minister said when Prime Minister Narendra Modi was the Chief Minister of Gujarat, many important decisions were taken in the interest of farmers and people. Thus, the electricity tax applicable in residential areas since 1983 has been gradually reduced. Since 2012, 7.5 percent electricity tax has been imposed in rural residential areas and 15 per cent in urban areas, Desai added.