Now, Gujarat govt grants amnesty even to sales tax defaulters

The state government on Tuesday announced an amnesty scheme for pending sales tax cases of below Rs1 crore, dating back to financial year 2005-06 and earlier. The move was criticised by the opposition Congress which alleged that it was done to favour bigger units.  

The government said that the scheme was aimed at benefiting small traders, but it failed to provide number of potential beneficiaries and the likely revenue loss.

Making an announcement in the House, state finance minister Vaju Vala said the scheme was aimed at disposing off old cases that were pending for several years.

"The Amnesty Scheme will be valid from April 1, 2012, to September 30, 2012. Cases pertaining to the period up to March 31, 2006, and where outstanding sales tax dues are less than Rs1 crore, would get the benefit," Vala announced.

Vala said that the amnesty scheme was targeted at small units and traders, and pointed out that cases, where tax amount was more than Rs1 crore, would not get any benefit.

Reacting to the announcement, the Opposition Congress said that the FM had failed to provide details about the exact quantum of relief the scheme would provide, and alleged that it was aimed at providing an escape route to bigger units and traders.