Adopting major industry and traders’ friendly measures, Punjab Deputy Chief Minister Sukhbir Badal on Friday abolished e-trip system besides exempting 1.86 lakh dealers from VAT assessment having turnover less than Rs1 crore by the Excise Department. Sukhbir also announced to implement ‘Rahat Scheme’ for all urban areas.

In addition, he also launched a helpline number — 1800-258-2580 — for the business community to register their grievances and suggestions. Writing a new chapter of relationship between Punjab Government and business community during a meeting with traders, Sukhbir 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.

Besides, new self-assessment policy has been launched for about 80 per cent dealers of total dealer base. “From today onwards, there would be no e-trip applicable in the State,” said Sukhbir, announcing abolishment of e-trip. It was the long pending demand of industrialists and traders as they were resisting the existing VAT collection system of Excise and Taxation Department against tax-evasion.

The decision, to abolish e-trip system by fixing rate of tax to 3.5 per cent plus 10 per cent surcharge, was taken after holding series of detailed meetings and discussions with representatives of industry and trade fraternity through its six-member co-ordination committee. Under this liberalised policy, items under e-trip including yarn, vegetable, sarson, cotton and paper board have been exempted from the existing e-trip system.

As per new tax assessment policy, no case with turnover less than Rs1 crore would be taken up for assessment thereby benefiting 1.86 lakh dealers constituting about 80 per cent of the total dealer base. The decision assumes significance for the traders as their assessments of last four years are due and with this decision they have been given freedom from assessments for all these years. “In case assessment of any such dealer is taken up by any official, the dealer may complain at helpline,” he said.

Sukhbir announced that the Government would decide the criteria for selection of cases and put the same on Department’s website. “If any ETO takes up any case outside the list published on the website, concerned dealer may complain at helpline,” he said. Announcing a big relief to small re-rolling mills, Sukhbir said that iron industry would have to pay VAT under lump-sum scheme based on electricity consumption with 50 paise per unit of electricity consumed.

Abolishing e-trip for the industry, the re-rolling millers have to pay tax only two percent at the stage of import or first purchase instead of advance tax of 2.5 per cent. Sukhbir also announced new tax slab and extended Rahat scheme, aimed at completely doing away with ‘Inspector Raj’, for shopkeepers of Class-I and Corporation towns which was earlier applicable to only to Class-II and Class-III towns.

Announcing new tax slab for traders, Deputy Chief Minister said there would be no tax increase for next three years and after that there would be marginal increase of five per cent. launching social security scheme for business community, he announced free insurance by Government for dealers with turnover up to Rs1 crore. Under this policy, three types of insurance covers would be provided including accidental death and disability insurance of Rs2 lakh, health insurance of Rs50,000 and fire insurance of Rs5 lakh.