Punjab opposition parties accuse AAP-led govt of unleashing 'tax terrorism' on trading community

The opposition alleged that the government had directed all excise and taxation officers (ETO) of the Goods and Services Tax (GST) wing to carry out at least four raids every month.
Aam Aadmi Party (AAP) National Convenor Arvind Kejriwal (L) with Punjab Chief Minister Bhagwant Mann (R).
Aam Aadmi Party (AAP) National Convenor Arvind Kejriwal (L) with Punjab Chief Minister Bhagwant Mann (R).(File Photo | ANI)
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CHANDIGARH: The opposition parties in Punjab including the Congress, Shiromani Akali Dal (SAD) and Bharatiya Janata Party (BJP) accused the Aam Aadmi Party (AAP)- led government of unleashing "tax terrorism" on the trading community.

The opposition alleged that the government had directed all excise and taxation officers (ETO) of the Goods and Services Tax (GST) wing to carry out at least four raids every month.

Shiromani Akali Dal president Sukhbir Singh Badal claimed that the AAP government led by Chief Minister Bhagwant Mann is trying its best to destroy the medium enterprises by raiding the premises.

"The government has issued orders to conducted 1000 raids every month," he claimed.

"Shiromani Akali Dal appeals to traders to oppose this government hooliganism, otherwise it will spoil the business environment in the state. We ourselves will start a public movement against these raids and demand abolition of the Inspector State and re-implementation of the 'relief' scheme initiated by the Akali government,’’ he said.

Badal added that the 'Rahat' scheme had eased the intervention of tax officers in commercial locations by allowing traders to pay tax of Rs 5,000 for a turnover of Rs 25 lakh to Rs 20,000 for a turnover of Rs 1 crore. "This is essential for the safety of the trading community, who are already facing gangsterism and forced extortion."

Punjab BJP General Secretary Anil Sareen said that the government has devised a plan to loot the traders to cover the expenses of its leaders from Delhi. "The AAP government is now using the taxation department as a tool for extortion.’’

"There is a saying in Punjabi: ‘Eat your own, bring ours too.’ That’s exactly the state of affairs under the AAP government,’’ he said.

Sareen alleged that on April 18, the AAP government issued a new directive instructing Deputy Commissioners in the taxation department to ensure that each ETO conducts four inspections every month.

"This would result in around 1,200 inspections across the state each month. If an average penalty of Rs 8 lakh is imposed per inspection, the monthly collection would total Rs 96 crore and annually a staggering Rs1,152 crore,’’ he claimed.

Sareen warned that if the government does not roll back this directive and stops forcibly extorting traders, the BJP will launch a statewide agitation in protest.

Punjab Congress president Amarinder Singh Raja Warring alleged that finance minister Harpal Singh Cheema had directed all 250 excise and taxation officers (ETO) of the Goods and Services Tax (GST) wing to carry out at least four raids each in a month. He added that the ETOs were asked to collect at least Rs 8 lakhs during each raid.

The Ludhiana MP pointed out that this translates to 1,000 raids with Rs 80 crore in penalties every month, leading to collection of Rs 960 crore annually.

He said the state government, already at the verge of bankruptcy, has now resorted to a novel way of ‘robbing and looting’ the traders.

Punjab Pradesh Beopar Mandal president Amit Kapoor also alleged that the govt has set aggressive monthly raid targets for excise and taxation officers (ETOs), under which each officer was expected to conduct multiple raids resulting in hefty penalties.

"With 250 ETOs in the state, nearly 1,000 raids will be carried out every month. This is nothing short of organised extortion, projected to squeeze around Rs 1,000 crore annually from the trading community,’’ Kapoor alleged.

Senior spokesperson of AAP, Punjab, Neel Garg criticized the BJP for its baseless allegations against the Punjab government’s taxation policies.

Garg accused the BJP of perpetuating "tax terrorism" nationwide while hypocritically accusing the AAP government of similar practices. Presenting comprehensive data, Garg showcased AAP’s unparalleled achievements in revenue collection and public welfare.

"It is laughable that BJP leaders, who institutionalized tax terrorism in India, are accusing Punjab’s AAP government of spreading the same,” Garg said. He highlighted the BJP's imposition of GST on essential items like milk, curd, and educational materials, as well as worship materials for temples and gurdwaras.

"The BJP, which promised no taxes when it came to power, has instead burdened the common man with a complex GST structure that harasses small traders and shopkeepers," he added.

Taking aim at SAD-BJP, Garg accused them of fostering "mafia raj" that siphoned public funds for personal gains. "Under AAP, every rupee of tax collected is spent on public welfare—not private pockets,” he said.

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