Chandigarh, March 22
Punjab Finance Minister Harpal Singh Cheema on Sunday said the One-Time Settlement (OTS) Scheme for VAT arrears has witnessed an overwhelming response, with 7,845 applications covering dues of around ₹298.39 crore and ₹111.16 crore already recovered. Positioning it as a decisive push to clean up legacy tax burdens while boosting revenue, he warned that the relief window closes on March 31, after which the government will shift to strict recovery mode, with nearly 8,000 properties already identified for action.
Cheema said, “The scheme has already resulted in a total realisation of ₹111.16 crore. The active participation from the Ludhiana, Amritsar, Jalandhar, Patiala, and Ropar divisions is commendable. The strong response from these key districts demonstrates a growing awareness of the scheme’s immense financial benefits.”
Issuing a strong appeal, Cheema said, “All eligible taxpayers must step forward and contribute to the state’s growth as the scheme approaches its definitive conclusion on March 31, 2026. Businesspersons must not miss this last opportunity to resolve pending VAT arrears and seamlessly align with the state’s taxation frameworks before the OTS window closes permanently. The unprecedented leniency and substantial waivers offered under this scheme are strictly time-bound.”
Encouraging taxpayers to utilise the final window, Cheema cautioned, “The state government’s current posture of facilitation and waiver will naturally transition back to strict statutory compliance and uncompromising recovery protocols once the deadline lapses, leaving unresolved legacy accounts subject to standard regulatory scrutiny without the shield of these concessions.”
The Finance Minister added that after March 31, 2026, recovery proceedings will be carried out in accordance with the provisions of law in cases where dues remain unpaid. As part of preparedness, approximately 8,000 properties have already been identified for necessary action, wherever required.
Emphasising the core philosophy, Cheema said, “The overwhelming response to the OTS scheme reflects the trust of taxpayers in the transparent and business-friendly policies of the CM Bhagwant Singh Mann-led Punjab Government. This initiative is aimed at providing relief, reducing litigation, and strengthening the State’s revenue system.” He further added that the scheme was specifically designed to offer a golden opportunity to settle old VAT liabilities with substantial relief in interest and penalties, enabling businesses to start afresh with a clean financial slate.
