Punjab to give free power to poor, cuts VAT on household goods

In a series of populist steps ahead of assembly polls, Punjab government will provide up to 200 units of free electricity to the poor for domestic consumption every month and cut VAT on a number of household goods. The decisions were taken at a cabinet meeting chaired by Chief Minister Parkash Singh Badal here this evening. The government also decided not to recover the arrears of tubewell bills from farmers for the period during which free power facility was not given to them, an official statement said. The cabinet approved a comprehensive policy for regularisation of unauthorised colonies within the municipal limits of the state. Under the new policy, municipal institutions would approve the building plans in the demarcated areas after charging requisite development fee from the colonisers. The cabinet also approved reduction in purchase tax on sugarcane from 5 per cent to 2.5 per cent. However, 10 per cent surcharge would continued to be levied. It also decided to slash VAT from 12.5 to 5 per cent on household items used with hand like vercelli machine, coal press, masala grinder, juice machine and mincers to benefit the economically weaker sections of society. To expeditiously resolve issues of Punjabi NRIs, the cabinet gave approval to sanction requisite posts for the newly-set up 'Punjab State NRIs Commission'.