Punjab’s political battlefield is heating up as accusations of “tax terrorism” fly thick and fast between the ruling Aam Aadmi Party (AAP) and opposition parties — the Bharatiya Janata Party (BJP) and Shiromani Akali Dal (SAD). At the centre of the storm lies a purported controversial directive from the Punjab Taxation Department, mandating monthly inspections by Excise and Taxation Officers (ETOs) — a move that has sparked outrage among traders and political circles alike.
Notably, Punjab Congress president and Ludhiana MP Amarinder Singh Raja Warring was the first to raise the alarm over what he termed as “government-sponsored loot”. On Sunday, he accused the AAP Government of unleashing “tax terrorism” through coercive GST raids, citing Finance Minister Harpal Singh Cheema’s alleged directive to 250 ETOs to conduct at least four raids monthly, each targeting a recovery of Rs eight lakh.
BJP’s Charge: AAP Using Tax Dept to Fund Delhi Leaders
Launching a scathing attack, Punjab BJP general secretary Anil Sareen accused the AAP Government of institutionalizing extortion through the Tax Department. “The AAP government has weaponized the taxation machinery to fill its coffers and fund the luxuries of Delhi leaders,” said Sareen at a press conference in Chandigarh. Citing an April 18 order instructing each ETO to conduct four inspections monthly, Sareen warned that the plan would lead to approximately 1,200 inspections across Punjab every month, potentially extracting fines worth Rs 96 crore monthly — or Rs 1,152 crore annually.
“This is not governance — it’s organized loot,” Sareen said, adding, “Officials have been unofficially instructed to slap fines of Rs eight to 10 lakh per inspection. Traders are being forced into submission under threat of raids. It’s tax terrorism, pure and simple.” Sareen also criticized the government for failing to assess Punjab’s unique challenges as a border state and for worsening the economic climate. He threatened statewide agitation if the order was not withdrawn. BJP leaders Rakesh Rathore, Vineet Joshi, Sukhwinder Singh Goldy, and Manjit Singh Rai echoed the sentiment, calling the move an “economic assault on Punjab’s traders”.
AAP’s Rebuttal: BJP is the ‘Father of Tax Terrorism’
AAP Punjab's senior spokesperson Neel Garg came out swinging, accusing the BJP of hypocrisy and selective outrage. “It’s laughable that the BJP, which turned ED and IT raids into instruments of fear, is now sermonizing about tax terrorism,” said Garg, flanked by AAP leader Govindar Mittal.
Defending the inspection directive, Garg maintained that the Punjab Government is focused on ensuring compliance and transparency — not harassment. He highlighted AAP’s unprecedented gains in tax revenue. “Excise revenue of Rs 28,020 crore in three years under AAP, more than the SAD-BJP and Congress regimes; GST collection of Rs 64,253 crore — triple that of Congress’s tenure; Own tax revenue saw a 55 percent surge to Rs 57,919 crore,” Garg listed out.
“Every rupee collected goes back to the people in the form of welfare schemes, infrastructure, and better governance,” said Garg, adding, “Unlike BJP’s corrupt regime, where revenue vanished into private pockets, we invest it transparently for the people.” Garg further slammed BJP’s GST policy, accusing it of taxing essential items like milk, curd, and school materials. “They harassed small shopkeepers and forced compliance without offering relief. AAP’s system is revenue-driven but fair and accountable,” he said.
SAD’s Stand: End Inspector Raj, Restore Relief Scheme
Shiromani Akali Dal (SAD) president Sukhbir Singh Badal on Tuesday described the AAP directive as “tax terrorism at its worst”. Accusing the Mann-led government of waging war against Punjab’s small and medium traders, Sukhbir said: “Ordering 1,000 inspections every month is nothing short of official goondaism.”
SAD has called upon traders to resist what it termed the “Inspector Raj 2.0”, alleging that the move is intended to generate illicit revenue to bankroll AAP’s political extravagance. “This is not governance. It’s hooliganism wrapped in bureaucracy,” Sukhbir charged. Besides, SAD also demanded the reinstatement of its flagship ‘Rahat’ scheme, which had offered fixed tax slabs based on turnover — Rs 5,000 for Rs 25 lakh turnover and Rs 20,000 for Rs one crore turnover — while limiting physical inspections of business premises.
“The trading community is already reeling from threats by extortion gangs. Now, they are being hounded by tax officers. We demand an end to this double trauma,” Sukhbir said, adding that SAD would launch a public movement if the government fails to roll back the directive. As Punjab’s political parties clash over the contentious directive, traders find themselves at the receiving end of growing uncertainty. BJP is threatening statewide protests, while SAD is calling for a mass movement, and AAP is defending the move as a step towards efficient tax collection.