Govt plans tax cut to make CFLs cheaper
CFL bulbs may turn cheaper as efforts are on to reduce VAT on these energy-efficient products to 4%.
By Rajat Guha & Subhash Narayan, TNN |
NEW DELHI: Compact fluorescent light (CFL) bulbs may turn cheaper soon as efforts are on to reduce the value-added tax (VAT) on these energy-efficient products to 4%. The power ministry has written to state governments to reduce tax on CFL bulbs so that their use is promoted.
A formal proposal on reduction of VAT on these bulbs may be submitted to the empowered group of state finance ministers on VAT. CFL bulbs now attract 12.5% VAT in several states.
Haryana and Punjab have already reduced VAT rate on the bulbs to 4%. Delhi is likely to follow the suit soon. For other states, an implementation schedule may be drafted by the empowered group of finance ministers.
“We want to promote usage of energy-efficient equipment and appliances in the country. Lower VAT rate on CFL would help to reduce its price, making it more affordable for households,” a Bureau of Energy Efficiency (BEE) official said.
A CFL bulb consumes 80% less power than an ordinary bulb while providing better lighting. These bulbs also last seven times longer compared to regular incandescent bulbs.
However, a major deterrent in popularising the CFL use is its prohibitive price. The bulbs are 8-9 times dearer to regular bulbs.
A formal proposal on reduction of VAT on these bulbs may be submitted to the empowered group of state finance ministers on VAT. CFL bulbs now attract 12.5% VAT in several states.
Haryana and Punjab have already reduced VAT rate on the bulbs to 4%. Delhi is likely to follow the suit soon. For other states, an implementation schedule may be drafted by the empowered group of finance ministers.
“We want to promote usage of energy-efficient equipment and appliances in the country. Lower VAT rate on CFL would help to reduce its price, making it more affordable for households,” a Bureau of Energy Efficiency (BEE) official said.
A CFL bulb consumes 80% less power than an ordinary bulb while providing better lighting. These bulbs also last seven times longer compared to regular incandescent bulbs.
However, a major deterrent in popularising the CFL use is its prohibitive price. The bulbs are 8-9 times dearer to regular bulbs.
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