One-time Settlement Policy For Tax Defaulters On Cards

Based on available information, the government is building a justification to release approximately 27,000 individuals who have minimal debt to the government. Instead, the government will prioritize its efforts on individuals with substantial tax defaults and endeavor to recover taxes from them.

According to reports, the majority of tax defaulters are individuals who have not paid taxes under the Punjab VAT Act, 2005. These defaulters amount to 21,734 individuals, collectively owing Rs 11,810.34 crore, which includes tax, interest, and penalty. 

Following this group, there are 19,026 defaulters under the Central Sales Tax Act, owing Rs 2,573.86 crore. Additionally, there are 1,952 defaulters under the Punjab Infrastructure (Development and Regulation) Act, owing Rs 690.39 crore, and 689 defaulters under the Punjab General Sales Tax Act, owing Rs 297.65 crore.

In addition to the previously mentioned defaulters, there are also individuals who have yet to pay taxes under the PVAT (Punjab Value Added Tax) and Punjab Entertainment Tax Act. 

The combined number of individuals who have defaulted on their taxes is 44,313, and the total amount they owe is Rs. 15,410.35 crore. These cases have been pending since the implementation of the Goods and Services Tax (GST) in 2017. Notably, a significant portion of these taxes were absorbed or incorporated into the GST system.

According to a senior official in the state taxation department, out of the total outstanding dues, approximately Rs. 5,000 crores of unpaid taxes are owed by government procurement agencies.

According to reports, a Cabinet sub-committee, led by Finance Minister Harpal Cheema and consisting of Education Minister Harjot Bains and Sports Minister Gurmeet Singh Meet Hayer, has reached an agreement on the overall framework for the draft of the One-Time Settlement (OTS) policy. The sub-committee has been specifically formed to prepare this policy.

It is got to know by the sources that the committee has reached a consensus that the One-Time Settlement (OTS) policy will enable them to prioritize the recovery of more significant outstanding amounts while simultaneously addressing minor dues from a broader range of defaulters, resulting in a clean-up of their ledgers. 

Finance Minister Harpal Cheema stated that the draft is in the final stages of development and will soon be presented to the Cabinet for its ultimate approval.