Punjab: Government’s move to collect tax from traders has created controversy

Punjab: The state government’s drive to collect taxes from traders has stirred a controversy. The Shiromani Akali Dal (SAD) has termed it “tax terrorism” while the Bharatiya Janata Party (BJP) has called it “blatant extortion”. SAD president Sukhbir Singh Badal said the AAP government and Chief Minister Bhagwant Mann are trying their best to ruin medium-sized traders as tax officials across Punjab will be forced to collect money from traders by issuing orders to conduct 1,000 raids every month. Terming it “tax terrorism”, Badal asked traders to oppose this “government hooliganism” or else it will spoil the business atmosphere in the state. “We will launch a public agitation against this drive and demand the abolition of the ‘inspector state’ and reintroduction of the ‘rahat’ scheme launched by the Akali government,” he said. Advertisement
Punjab BJP general secretary Anil Sareen, in a separate press conference, alleged that on April 18, the AAP government had issued a new directive, directing deputy commissioners of the taxation department to ensure that each excise and taxation officer (ETO) conducts four inspections every month and resolves these within the same time-frame. “This will lead to around 1,200 inspections every month across the state. If an average fine of Rs 8 lakh is imposed on every inspection, the monthly collection will total Rs 96 crore and Rs 1,152 crore annually,” he said. This will lead to arbitrary action by officials and promote blatant corruption, he said. Sareen said the government has informally instructed officials that a fine of Rs 8 to 10 lakh should be imposed on every inspection. This is not just harassment of traders – it is a direct loot of their hard-earned money, he said. Sareen warned that if the government does not withdraw the directive, the BJP will launch a state-wide agitation against it.
Akali Dal and BJP raise crop loss issue
The Akali Dal and the BJP raised the issue of crop damage due to recent rains and thunderstorms besides incidents of fire. The BJP delegation comprising several senior leaders, including Avinash Rai Khanna, Manoranjan Kalia, Rana Gurmit Singh Sodhi, Ashwani Sharma, Rakesh Rathore, Kewal Dhillon, Fateh Singh Bajwa, Parampal Kaur, SS Virk, Dayal Sodhi and Darshan Singh Nanewal, submitted a memorandum to the Punjab Governor. They said the state government has not even assessed the crop loss yet. Akali Dal spokesperson Daljit Singh Cheema said in a video statement that the state government has not announced any compensation.
‘Allegations baseless’
Ruling AAP spokesperson Neel Garg criticised the BJP’s “baseless” allegations against the government’s taxation policies. Speaking at the press conference, Garg said, “It is ridiculous that BJP leaders who have institutionalised tax terrorism in India are accusing the AAP government of Punjab of spreading it.” He highlighted the BJP’s imposition of GST on essential commodities such as milk, curd and educational material as well as puja materials for temples and gurudwaras.