Accusing the Punjab Government of imposing anti-trade laws, traders on Monday threatened to launch State-wide agitation, saying that the State Government was only “milking” trading and industrial community for mobilising revenues.
Traders under the banner of Punjab Pradesh Beopar Mandal also warned of knocking the doors of the Punjab and Haryana High Court against introducing “draconian” laws like e-trip, advance tax.
“Punjab Government has been coming up with new taxation structure or systems like advance tax, e-trip, etc, all the time without realising their adverse impact on the business,” said Punjab Pradesh Beopar Mandal general secretary Mohinder Aggarwal.
Traders questioned the launching of multilayer taxation systems in Punjab, when the Goods and Service Tax (GST) has been proposed for all the States. In its new traders’ policy, the state government has announced launch of single stage taxation for white goods, FMCG and aerated drinks, Voluntary Disclosure Scheme, besides proposing heavy penalty for any “mistake” committed.
“The State Government is confusing the business community of Punjab by introducing systems like advance tax, e-trip, single-stage taxation structure, lump sum tax. The intention of the State Government is to mobilise money only from business community without touching farmers which is its major vote bank,” he said.
“When Value Added Tax (VAT) model is already being followed, then what is the need to resort to single stage taxation which is an older version of tax law. Moreover, when GST comes in, these systems will become irrelevant. Are we moving ahead or backwards in terms of taxation systemIJ”
he asked. Aggarwal said the announcement for an agitation will be made next month after holding meeting of traders from across the State at Amritsar. Traders are up in arms against particularly the advance tax system and e-trip system which they claim have become stumbling block in smooth operations of their business. “Punjab Government has replaced entry tax with advance tax system which is set to hit the business hard as industry will be forced to shell out heavy amount of money in advance even before making sales of certain commodities,” he said.