To boost industrial growth in the State, Punjab Government would come up with ‘Make in Punjab’ policy soon. Deputy Chief Minister Sukhbir Badal on Thursday announced formation of ‘Make in Punjab’ policy within one month.
Sukhbir, while chairing a meeting of Cabinet sub-committee on tax reforms, asked the Excise Department to prepare a detailed report after examining present tax structure in neighbouring States.
The purpose of this exercise should be to rationalise VAT (value added tax), sales tax, or entry tax on various goods and items, he said.
Sukhbir said that this would allow local industry to compete at par with the neighbouring units.
Conceding a major demand of existing industry, cabinet sub-committee also agreed to slash VAT or sales tax as well as imposing entry tax on certain goods and asked the department to prepare a comprehensive report after consulting the concerned departments at the earliest.
Sukhbir, who also holds excise and taxation portfolio, instructed the excise and taxation department to make VAT refund procedure in an easier, faster and time-bound manner.
Giving directions, Deputy Chief Minister said that the refund should be ensured at the end of every month and instructed to clear the backlog by the end of this month.
Batting for the use of cutting edge technology, Sukhbir asked the department officers to modernise the existing computerisation which
should be made industry specific so that VAT refund gets automatically transferred into the accounts of industrialists and traders.
Besides, he also directed the department to launch computerisation of all integrated check posts at the earliest to plug the tax evasion thereby lessening congestion at barriers.
Financial Commissioner, Taxation Anurag Aggarwal informed that out of about 2.5 lakh registered dealers, approximately 5,000 firms apply for VAT refund and on an average a sum of `65 crore is being refunded per month to the bearers. He assured to the committee that VAT refund procedure would be made simpler at the earliest.
To curtail pollution level in densely populated cities like Amritsar, Jalandhar and ludhiana, the Cabinet sub-committee also consented to slash VAT on e-bikes and e-scooters. Besides, it was also discussed in the meeting to rationalize VAT on bicycles and its spare parts.
Other than Sukhbir, the state Industries and Commerce Minister Madan Mohan Mittal, Food and Civil Supplies Minister Adesh Pratap Singh Kairon, Rural Development Minister Sikandar Singh Maluka, Finance Minister Parminder Singh Dhindsa, and Irrigation Minister Sharanjit Singh Dhillon were the part of the meeting.