The Punjab Government on Friday announced the abolition of disclosures of trade transactions under the e-Trip system as well as exempted VAT assessment for 1.86 lakh dealers who had annual turnover of less than one crore rupees. It has launched a scheme and a dedicated helpline for the business community to register their grievances of suggestions.
Seeking to script a new chapter of relationship between the government and business community during a meeting with traders, the Deputy Chief Minister, Sukhbir Singh Badal announced to abolish existing e-transportation of information within Punjab e-Trip for iron and steel, yarn, vegetable oils, mustard oil, cotton and paper board industry. He said that through the new liberalised policy the government had met a long-pending demand of the industrialists and traders as they resisted the VAT collection system of the Excise and Taxation department. To resolve such issues the government held detailed meetings and discussions with representatives of industry and trade fraternity through a six member co-ordination committee.
As per new tax assessment policy, no case with turnover of less than one crore rupees would be taken up for assessment, which would benefit about 80 per cent of the total dealer base. “In case assessment of any such dealer is taken up by any official, the dealer may complain at helpline number 1800-258-2580,” Mr. Badal said while providing details about the State government’s “Rahat Scheme” for the business community. He said that criteria for selection of cases would be put on the website of the Excise and Taxation department. The list of cases selected for assessment would also be put on the website, while the officers would not be allowed to take up any case outside the displayed list.
Announcing relief for the stagnating iron and steel industry of the State, Mr. Badal said that the small re-rolling mills would be required to pay a lumpsum amount VAT calculated in accordance with electricity consumption. The re-rolling millers would now pay two per cent as tax at the stage of import or first purchase instead of advance tax of 2.5 per cent.
Announcing new tax slab structure for traders, Mr. Badal said there would be no increase in the levies for next three years, after which a marginal increase of five per cent would be effected.
