CHANDIGARH: The Punjab Government Tuesday announced a scheme for One Time Settlement on a token charge of Rs.300 per lac for clearance of sales tax arrears under deemed assessment for trade and industry in the state for the pre-VAT period. 

The Government also decided to consider the adoption of the Haryana model for VAT regime in the state.

In another important decision the Government contemplates  to slash VAT from 12% to 4% after the recommendation of the newly constituted committee on certain commodities for three months on experimental basis with an assurance of increased revenue.  

These decisions were taken at a four and a half hours long interaction between the Punjab Chief Minister Parkash Singh Badal and the representatives of the trade and industry to iron out the long pending issues which hampered the growth of state's economy. 

Badal said that the committee of officers comprising Financial Commissioner Taxation and Principal Secretary Industries & Commerce under the Chairmanship of Chief Secretary would look into the various aspects of the demands raised by the members of different delegations in today's meeting.  Badal assured that the state government was ready to offer liberal support and cooperation to the industry by way of giving relief to it on a simple assurance of a reciprocal increase in revenue.   

He said that SAD-BJP Government was a pro-trade and industry government and committed to its overall development and growth.  Badal also announced that District Industries Committees would be constituted to give representation to all the segments of trade and industry in order to bridge up the communication gap between the industry and the government.  He reiterated that three development boards one each for Large & Medium Industry, Small Scale industry and Trade would soon be set up.

Badal also announced that in future none of any official of PSEB would visit the premises of the industrialists for checking power load where electronic meters were installed out side the factory.  He also directed the PSEB to review the position with regard to reduce the high voltage surcharge by 50% and distribution of load from 66KV instead of 11KV where the extended load was more than 1500 KV. 

The Chief Minister also asked the PSEB to review its decision of single point power supply to the promoters of licensed colonies.  Badal also asked the PUDA to look into the matter of external development charges under the provision of PAPR Act, 1995 and conversion charges to check the depression in the real estate market. 

The Chief Minister also agreed to the proposal of the Laghu Udyog Bharti led by its President Dinesh Lakra to grant Capital Subsidy to the industry instead of any specific partners. He said that in case of the industrial units where the style and constitution of many firms had been changed with the passage of time were facing hardships at the hands of industries department in getting the capital investment subsidy.  

Badal also assured the industrialists that he would take up the matter of reintroduction of freight equalization scheme and setting up of Thermal Plants near coal mines with the GoI to the advantage of the local industrialists.  The cost of production of electricity was Rs.1.17 near coal field but it was more than Rs.3.50 per unit in Punjab. He pointed out that the concept of freight equalization would help Punjab to save the local industry because the raw material was about 2% costlier as compared to other states and was situated farthest from the raw material producing states.  He assured that the state government would encourage the private generation of electricity not only to meet their own demand but also to sell the excess power. 

Badal also mentioned that the Punjab Government was considering an agreement with the Gujarat Government to get a Sea port exclusively for the use of Punjab and its industry and trade, as the Gujarat Government had already offered to develop its sea shore for the use of other state government's.  

Responding to the demands raised by Punjab Tax Bar Association led by its President Sudarshan Kapoor, Badal asked the Excise & Taxation Department to review their proposal for allowing lawyers/income tax practitioners for issuing certificate for the filing of VAT returns along with the Chartered Accountants.  Likewise he also directed the department to look into the demands of extension in the date of submission of F,H,E1,E2 and 'C' forms and online acceptance of sales tax returns and other documents. 

The delegations which met the Chief Minister included Punjab Beopar Mandal led by its President Amrit Lal Goyal, Chamber of Industries & Commerce led by Inderjit Singh, MM Vyas represented Ludhiana Spinners Association, Colonizers Association led by its President Kulwant Singh and Apex Chamber of Commerce PD Sharma.