The Punjab government has decided to introduce single stage taxation at the factory level on branded products in a bid to simplify tax collection and give relief to Lakhs of small traders and retailers.
A decision to this effect was taken by Deputy Chief Minister Punjab, Sukhbir Singh Badal here yesterday late evening, while presiding over a high level meeting with senior Ministers and leaders of the BJP assembled to discuss the modalities of the new Traders’ Policy to be announced on November 14 at Chandigarh.
After discussions with representatives of the BJP trader bodies, it was decided that single stage taxation would be introduced for all 'kiryana' items, all white goods (including televisions and refrigerators), medicines and branded shoes. More branded products are likely to be taken in the ambit of single stage tax in phases. The Deputy CM announced at the meeting that single stage taxation should be introduced from December 1 onwards.
According to the new policy for traders, Badal said with its implementation, the entire work would go “paperless”. Under this policy, all sanctions required by the traders could be secured online, he added. “The new policy would ensure that traders would not have to visit any government office for any purpose including payments and sales tax purposes,” he said.
Providing a major relief to the traders, the government has done away with the multiplicity in VAT on all commodities by imposing it right at the manufacturing level. The state has around 2.50 lakh traders, out of which some comply with rules. It has been learnt that only 900 pay more than Rs. 1 crore as VAT in a year, while a large section do not pay any VAT.
