Govt yet to notify entry tax, traders begin hoarding sugar

Ruchika M. Khanna

Tribune News Service

Chandigarh, May 29

Nine days after the state Cabinet announced its decision to impose 11 per cent entry tax on sugar under the Punjab Development of Trade, Commerce and Industry Act, the government is yet to promulgate an ordinance.

The delay has left enough room for private traders and sugar mills to “hoard” sugar before the tax is imposed and sugar prices go up. The delay in issuing the ordinance and its notification, has also led to some unscrupulous officials of the Excise and Taxation department, collecting the tax from sugar traders. 

Though top officials in Excise and Taxation Department here have asked their field staff to ensure that the tax is not collected before its notification, traders in Faridkot and Moga have alleged that for each truck coming into Punjab from Shambhu barrier or from the Ambala-Tepla road, they were forced to pay anything between Rs 4000 and Rs 10,000.

The officials admitted that at some places like Budhlada, their officials had started collecting tax, but they were issuing a receipt for the same. “But once this was brought to our notice, we got the tax refunded to the traders and also apologised for the same. We have no knowledge of illegal money being collected from any entry point in Punjab, and have asked our officials to remain vigilant against any such incident before a formal notification is issued,” said a senior officer.

Gurtej Singh, Director (Investigation), Excise and Taxation, has been asked to probe the allegations of illegal tax collection.

Traders say most sugar mills are holding on to their stocks till the time a notification is issued so that they can get better prices. Some traders have started bringing in huge consignments of cheaper sugar from UP for selling after the prices soar.