2 pc additional tax likely for electricity smart meters in Karnataka

BENGALURU: Power consumers in the state are in for a shock as they will be required to pay an additional 2 per cent tax for installation of smart meters.

The state government is now planning to install smart electricity meters across the state and make it mandatory. The Energy department had earlier said that smart meters will be installed only for new connections.

The power utilities in the state have to recover Rs 15,000 crore in dues to avail of the 15 per cent subsidy being offered by the Union government for installation of smart meters under the Revamped Distribution Sector Scheme (RDSS). Hence, Chief Minister Siddaramaiah has reportedly suggested increasing taxes at the local level to raise revenue.

Karnataka had earlier decided not to join the RDSS scheme and instead install smart meters on its own, but last month, it was given two year to recover dues towards escoms within two years and join the scheme