NE opposes CERC proposal to impose income tax

Agartala, Aug 1 (UNI) All the North East states have unanimously opposed the imposition of income tax on State Electricity Regulatory Commission (ERC), by the Central Electricity Regulatory Commission (CERC).

Tripura Power Minister Manik Dey informed mediapersons here last night that the CERC has imposed an income tax on all the ERC on the amount of purchase of electricity. As a result of this, the state will have to pay a tax of Rs 1.92 crore for the financial year 2003-04 and 2004-05.

Nagaland will have to pay Rs one crore 22 lakh, Mizoram one crore 40 lakh, Manipur one crore 87 lakh and Asom Rs eight crore 80 lakh.

The rate of power tariff is also going to increase as a new sort of tax has been imposed by the CERC, Mr Dey said adding that all the NE states have also agreed to create a common network system for giving and taking power.

Mr Dey said following the new instructions by the CERC, states will have to pay income tax, which was opposed by the representatives of all the NE states at Aizawl meeting.

The power minister also said within 2015, a number of hydro-electric project and thermal projects will be set up in the NE region.

UNI PB BA/SRC AD BD1250