Punjab expects Rs 800 cr VAT jump

The Punjab government is expecting a jump of Rs 800 crore in its annual tax collection, up from Rs 3,800 crore in 2004-05 to Rs 4,600 crore this fiscal owing to the implementation of value-added tax (VAT) in the state.

"We hope that we will end this fiscal with an increase of Rs 800 crore in total tax collections owing to implementation of the VAT in the state," Punjab Excise and Taxation Commissioner DP Reddy said here today after holding a review meeting with industrialists on VAT refunds.

Talking about VAT refunds, the commissioner assured industrialists the department would release the VAT refund arrears amounting to Rs 53 crore within three weeks.

"We will be releasing VAT refunds to industrialists within three weeks and if any interest is due on pending amount that will also be given," said Reddy.

Elaborating on the delay in disbursing refunds, the commissioner said, "In many cases, industrialists did not submit necessary documents along with refund application that caused the delay in disbursing the same. But now the department has done away with this condition."

The department received 1450 total applications of VAT refunds amounting to Rs 78 crore from the state industry. "Out of 1450, we have disposed of 592 applications amounting to Rs 25 crore and rest would also be disposed of soon," claimed Reddy.