900 business houses contributed 90% of Rs 14,000cr VAT in FY 12-13
November, 15th 2013
About 900 business units in Punjab contributed to 90% of value added tax (VAT) generation even as it ended at a higher value than the previous year at Rs 14,544 crore for FY 2012-13, leaving much scope for the cash-starved Akali Dal government to improve its financial situation.
According to the list, a massive 91,889 dealers in Punjab are paying "zero" VAT and have been categorized as nil tax payers. The data was shared at the felicitation ceremony to honour VAT contributors held here.
"My father and I are indebted to you 90% taxpayers, who have taken away a large burden out of us and because of whom we are here," Punjab deputy chief minister Sukhbir Badal told the conference.
Over 190 top VAT contributors from segments like electronic goods, packaged good, textiles, agro industries, etc., were given away awards at the ceremony.
Indian Oil Corporation emerged as the biggest taxpayer in the state with a contribution of Rs 2,367 crore, followed by Asia's largest marketing cooperative, Markfed, which contributed Rs 458 crore. The third in the list was 2012-inagurated HPCL-Mittal Energy Ltd at Rs 375 crore.
Only those industries which have generated Rs 5 lakh or more sales of any commodity are supposed to contribute to VAT collection.
Badal junior also annouced single stage taxation policy 2014 which will cover white goods such as TV, fridge, washing machine, microwave oven, aerated drinks and fast moving consumer goods marketed by MNCs.
Besides the new VAT policy, three insurance policies have also been introduced for business units -- life, health and fire insurance, with a cover of Rs 50,000, Rs 2 lakh and Rs 5 lakh respectively.
A voluntary disclosure scheme (VDS), that will allow defaulters to submit tax even after claiming concessional rate, was also introduced as part of the new policy.
The new VAT 2014 policy will exempt all purchases made by Darbar Sahib, Harimandir Sahib, Kuka Memorial Trust, Pingalwara Ashram, Amritsar and Devi Talab Mandir, Jalandhar.
The list of exempted items included rice bran, husk, Punjabi jutti and household items.