Punjab Faces Rs 2,000Cr Lose Of VAT A Year

Jalandhar: Admitting that there was annual leakage of over Rs 2,000 crore of value added tax (VAT) in the state, Punjab Cooperation Minister Captain Kanwaljit Singh said measures were being taken to contain it. Revenue collection via VAT is not on hoped lines and VAT worth about Rs 2,000 crore is getting leaked. As far as Punjab''s economy is worried, it is developing at a very slow pace because it mainly depends on agriculture and industry, both of which were in shaky position. Agriculture sector in the state brings only 15 per cent of total VAT as for the last few years, wheat production has fell by 20 per cent and industrial growth of the state had also decreased by one per cent over last year. Out of total collection of Rs 5,200 crore from VAT, industry brought only Rs 750 crore.

Moreover, it was not only a benefit to the agriculture sector as the subsidy was being ultimately extended to consumers. Welcoming the Commission to re-look the Centre-state relations under the chairmanship of retired Supreme Court Justice M M Punchhi, Singh demanded that national debate should be held on the issue before finalising the recommendations of the Commission. Instead of centralisation of power, there should be decentralisation of all powers comprising financial power as different states have different problems and if financial resources were handed over to the state, it could plan the development according to its needs. While the agriculture debt of Rs 17,000 crore was waived in Maharashtra, for Punjab, which contributes more than 60 per cent to the Central pool of foodgrain, no such waiver was announced.