Pb imposes infra fee on petrol, diesel, property purchase

Former Punjab Chief Minister Amarinder Singh. (Photo: Twitter/@capt_amarinder)


The Punjab government has decided to impose a special infrastructure development (ID) fee of Rs 0.25 per litre each on sale of petrol and diesel in the state.

The Punjab Cabinet led by Chief Minister Captain Amarinder Singh on Monday also gave a go ahead to special ID fee at the rate of Rs 0.25 for every one hundred rupees of the value of purchase of immovable property within the state.

This special ID fee will be deposited in the Development Fund of Punjab Infrastructure Development Board (PIDB).

The fee imposed on the aforesaid items would lead to creation of additional revenue of about Rs 216.16 Crore annually into the Punjab Infrastructure Development Fund (PIDF).

Meanwhile, in a reprieve to the business community especially the small and medium businessmen to sail through these trying times amid Covid-19, the Punjab Cabinet approved the ‘Punjab One Time Settlement Scheme (OTS) for Recovery of Outstanding Dues-2021’ to clear and settle their pending arrears.

With implementation of OTS, the state exchequer would bear a financial burden of Rs 121.06 Crore.

Divulging the details, a spokesperson of the CM’s Office said the scheme would be implemented from 1 February, 2021 across the state under which all the dealers whose assessments have been framed upto 31 December could apply under the scheme till 30 April, 2021.

The dealer can even submit additional statutory forms like C-forms which were not produced at the time of assessment, with the application form and will have to make the self-assessment and submit the proof of payment net tax payable as the result of settlement. The concerned Ward in-charge would issue an order of settlement which would not be reopened in any proceeding by way of review or revision.

An official spokesperson said Covid-19 has resulted in an unprecedented situation for all sections of the society, business community, especially, the small dealers have suffered a lot due to lockdown and subsequent decline in the business activity.

Various trade associations raised a concern that they are facing difficulties in procuring statutory forms prescribed under the Central Sales Tax Act, 1956 for availing concessional/ nil rate of tax on interstate transactions.

They also urged the state government for settling their outstanding dues by introduction of OTS scheme for the clearance and settlement of outstanding arrears under Punjab Value Added tax Act, 2005 and Central Sales tax Act, 1956, the spokesperson added.