Punjab recovers ₹111 crore under VAT settlement scheme as govt signals post-deadline enforcement
Punjab recovered ₹111.16 crore through its VAT settlement scheme, with a deadline approaching and stricter enforcement planned afterward.Summary
The Punjab government has recovered ₹111.16 crore under its One-Time Settlement (OTS) scheme for outstanding Value Added Tax (VAT) arrears. The scheme, which attracted 7,845 applications for a total of ₹298.39 crore in dues, offers businesses a way to settle liabilities with reduced penalties and interest, aiming to reduce litigation. Finance Minister Harpal Singh Cheema highlighted the scheme’s success and the increasing taxpayer confidence in the state’s tax regime.
The government is urging businesses to utilize the OTS before its March 31 deadline, framing it as a “final opportunity” to resolve legacy dues. Following the deadline, the state plans to transition from offering relief measures to stricter enforcement of tax laws, with nearly 8,000 properties already identified for potential recovery action.
This initiative is part of Chief Minister Bhagwant Singh Mann’s broader fiscal strategy to improve tax compliance, streamline business operations, and bolster the state’s revenue base. The scheme has seen significant participation from businesses in key industrial districts like Ludhiana, Amritsar, Jalandhar, Patiala, and Ropar.
(Source：Mint)