M A I N   N E W S

Punjab to cut ST on over 24 items
By Sarbjit Singh
Tribune News Service

CHANDIGARH, Aug 10 — The Excise and Taxation Department has decided to slash sales tax on several items. It has also decided to amend Section 14 ( B) of the Punjab General Sales Tax Act.

Already both proposals have been approved at the top level and the Cabinet’s nod is awaited. First about the amendment to Section 14 (B) of the Act. An ordinance in this connection will be issued soon. Its draft has been sent to the legal cell for vetting.

With the amendment to Section 14(B), traders engaged in the transportation of various goods in and out of the state will get an opportunity to file their appeals before the Excise and Taxation Commissioner in the case of violation of the mandatory registration of their mode of transportation and declaration of goods at the entry and exit points, popularly known as Information Collection Centres (ICC), located at various places on the state border.

Confirming the decision to amend the Act, Mr Tikshan Sood, Minister of State for Excise and Taxation, told TNS here today that at present anyone who violated the rules pertaining to the registration of vehicles loaded with goods at an ICC was subjected to a heavy penalty, which was half of the total value of the goods in the vehicle. One had to pay the penalty even in the case of the offence being committed unintentionally or unwittingly. There was almost no scope of waiving the penalty even after proving that the violation was bona fide.

With the proposed amendment, bona fide violators would get a chance to appeal and get the penalty waived to a large extent. There would be a provision for a nominal penalty in the case of bona fide violators. It could be a nominal fine of Rs 2000, or so imposed on the driver of the vehicle concerned to make one follow the rules, pertaining to registration at the ICC concerned. He said that because of the tough provisions in the existing Act, a large number of petitions were pending in various courts seeking relief with regard to the penalty. Many representations had also been received by the department in this connection.

A few days ago, a truck loaded with material belonging to an important government department was fined Rs 6 lakh for non-registration at the ICC concerned. The truck was allowed to go after a bank guarantee against the fine was given by the department concerned. There were several other such cases. Recurrence of such incidents had made the government amend the Act, Mr Sood said.

He said he was expecting that the draft of the ordinance would be cleared soon by the legal cell and then it would be submitted to the Cabinet for approval.

The proposal to slash sales tax on over two dozen items had been approved after discussion at the top level by the authorities concerned of the Excise and Taxation Department and the Punjab Finance Department.

Computers, edible and non-edible oils, pickles, plastic chappals, dals, tractor and combine harvester parts, utensils, sweatmeats and bakery goods, cooking gas and organic manure, etc, would become cheaper with the implementation of the new sales tax rates.

According to details available, sales tax would be cut to 4 per cent from the existing 6 per cent to 8 per cent on bicycles, rickshaws and tri cycles. On edible and non-edible oils it would be brought down to 4 per cent from the existing 6 to 8 per cent and on pickles, chatni, jam and papad-varian it would be slashed to 4 per cent from the existing 6 to 12 per cent. On computers it would be reduced to 4 per cent from 8 per cent and on jewellery and precious stones it would be cut to 1 per cent from 8 per cent and on plastic chappals it would be slashed to 4 per cent from the existing 8 per cent.

On all kinds of utensils, sales tax would be cut to 4 per cent from the existing 8 per cent and on dals it would be brought down to 1 per cent from the existing 3 per cent. On rice bran it would be completely waived from the existing 8 per cent and on tractor and combine harvester parts it would be brought down to 4 per cent from 8 per cent and on organic manure it would be reduced to zero per cent from the existing 8 per cent. On bone meal, polythene bags and ball bearings it would be brought down to 4 per cent from the present rate of 8 per cent. On cooking gas it would be slashed to 8 per cent from 10 per cent.

In the case of halwai shops and bakeries, two options would be available. The sales tax rate would be 8 per cent. But if one did not want to opt for this, then the tax could be paid in lumpsum.

The sales tax slab would be Rs 5000 in the case of shops employing five persons and Rs 12,000 in the case of shops employing 10 persons and Rs 36,000 for shops with up to 20 employees. If there were more than 20 employees the shopkeeper would have to give Rs 1,20,000 as tax per year.

Mr Sood said that before finalising both options for halwais and bakery owners, negotiations were held with their representatives and they had accepted these. He said the existing rate on sweatmeats was 5 per cent, but under the national pattern of minimum floor rates of sales tax it should be 8 per cent.

Mr Sood said the minimum floor rates as per the national decision had been implemented in the case of 98 per cent of the goods shortlisted at the national level. He said the proposal mooted by the government to slash the sales tax rates on over two dozen items did not go against the national uniform floor rates of sales tax.

He said he had already cleared the proposal with regard to the slashing of the sales tax rates. The proposal would be sent to the Excise and Taxation Minister, Mr Adesh Partap Singh. He said that he had already discussed the proposal with Mr Adesh Partap Singh. Following the clearance of the proposal at the Excise and Taxation Minister level, it would be sent to the Cabinet for approval.