Punjab govt targets 25 percent growth in VAT collection

The Punjab Government is targeting to achieve 25% plus annual growth in VAT collection from existing rate of 10.8% to put the fiscal health of State on sound footing.

Speaking after releasing a book titled 'Punjab Value Added Tax Act' written by  Vinod Vashisht here today the Punjab Finance Minister  Manpreet Singh Badal said that the tax collection system was being streamlined and Government was taking every measure to increase penetration and compliance of tax system in the trade and industry.

The Finance Minister said that with the increasing economic activity especially after announcement of Bhatinda Refinery and setting up of three Thermal Plants in the State, he hoped that stamp duty collection in the State would also rise to Rs.2300 crores from the existing collection of Rs. 1700 crores. He said that with the announcement of Refinery land rates in the adjoining areas have shot up by 40 times and many real estate developers are showing interest to set up residential colonies in the vicinity of Refinery

Responding to the queries, the Finance Minister said that the Punjab Government has taken various measures to make VAT system in Punjab people friendly by introducing e-filing of VAT returns, minimizing harassment at Information Collection Centres and allowing references to the Assessing Authority in case of default in the field.

He said that to make the tax collection system more effective the Finance department has allowed the recruitment of more Tax Inspectors in the State, so that they could compile the database by 'street by street audit' of various trade and industry establishments.

The Finance Minister said that the VAT system was one of the better organized system of  tax collection and many industry and trade organization have already welcomed the introduction of new VAT system.

Badal appreciating the comprehensive analysis of VAT laws in the book , hoped that this book would become a reference source for tax practitioners.  Badal commended the pains-taking efforts on the author's part in bringing out this book for the benefit of all. He said that he duly endorses views put forth by author in the Preface "IT is of utmost importance that the provisions of law which the citizens are expected to obey and which affect and control their daily life and activities, must be easily ascertainable and those provisions must not be kept hidden in a secluded corner of the Secretariat. All concerned are entitled in our set-up to demand that books containing laws in force are made easily available to those who may desire to acquire knowledge of those laws."   Badal said, this book will definitely act as one of the tools in bringing much needed awareness at all quarters as VAT still is in its stabilization stage.

Vashisht giving the details of the book informed that this book is one of its kinds covering detailed commentary on VAT in Punjab and UT of Chandigarh, both featuring section-wise commentary with notifications and recent case laws.   The book also contains VAT Rules, VAT Forms, Tax incentive Conditions for Industries, Clarifications by Commissioner, VAT in UT of Chandigarh, useful Constitutional Provisions and Frequently asked questions (FAQs). Apart from the VAT laws, the Book includes the Central Sales Tax Act and CST Rules along with important notifications. Information Reckoner and Alphabetical VAT & CST rate finders backed by powerful general index helps in finding out applicable rates of various commodities and other needed operating information. This book offers some useful side information too such as how is the VAT environment in all of the neighboring States of Punjab and Chandigarh.