Chandigarh, March 25 -- Months after the Aam Aadmi Party (AAP)-led municipal corporation (MC) withdrew the proposal to increase electricity tax, the Bharatiya Janata Party (BJP)-led civic body under mayor Harpreet Kaur Babla is set to reintroduce the proposal in House meeting on Tuesday. If approved, this will increase the cost of electricity for city residents. To address the ongoing financial crisis, the MC has proposed an increase in the electricity tax from the current 10 paise per unit to 16 paise per unit, bringing it in line with Punjab's rates.

As per the agenda prepared by MC officials, the municipal cess on electricity consumption, which has been in place since 2019, currently generates approximately Rs.15-16 crore annually. Th...