More Punjab BJP leaders on Friday demanded a rollback of ‘advance tax on stock’, saying that it is unacceptable. They described it as “anti-industry policy” even as Excise and Taxation Department said that this “anti-tax evasion” measure will help eliminate inspector raj.
Punjab local Bodies Minister and BJP MlA Anil Joshi, a day before, threw his weight behind trading community in Amritsar, demanding the withdrawal of ‘advance tax on stock’ and even threatened to lead industry’s protest against it.
“This (Advance tax on stock) is not justified at all. When goods have not been sold, how a trader can pay tax on it,” said BJP MlA from Jalandhar North KD Bhandari.
He said: “There are assembly elections after two years...Traders are the backbone of the economy. We are with traders and demand its rollback.”
Bhandari said that he along with other leaders, including BJP MlA and Minister Anil Joshi, met Punjab Deputy Chief Minister Sukhbir Badal on this issue a month back, demanding a review on it.
Another BJP MlA from Phagwara, Som Prakash, also supported traders’ grouse and demanded advance tax on stock should be rolled back. He said that he had also written to the state government in this regard and sought its withdrawal.
“I have also written to the state government and it should not be implemented. It is also BJP’s stand and the party has also conveyed it,” he said.
Joshi, on Thursday, had said that ongoing policy of collecting advance tax on stock from traders virtually ruined them economically and said that he would prefer to extend support to traders than to continue as Cabinet Minister.
Traders in Punjab have described advance tax on stock as “draconian law”, imposed on traders without consulting them by Punjab Excise and Taxation Department.
“We are being asked to pay tax on goods which are still with us as stock and have not been sold. There is no such provision which exists in any other state. We want the old format of tax collection (on sale of goods) should be restored,” said Federation of Dry Fruits and Karyana Association president Anil Mehra.
Meanwhile, Punjab Excise and Taxation department rejected the charge of bringing “anti-trader” tax provision and said that it brought self declaration mode of declaring stocks by traders in order to avoid their exploitation through physical verification of stocks.
This system would also contain ‘inspector raj’, saving traders from any sort of exploitation and also help boosting tax revenue, he said.