Traders in the state of Punjab have been the beneficiaries of several schemes taken out by the state government which helps them enhance their business by providing them with various benefits. In 2013 when Deputy Chief minister Sukhbir singh Badal announced the ‘New Traders policy’. It was well received by the trader of the state. It came out with the purpose of attracting more investors and making the trader government reason more transparent.
The Small traders in the state of Punjab were on the receiving end of the scheme too. By giving them some leverage to pay Value Added Tax, government has decided to provide small traders with social security net.
The Raahat scheme as it is known is a great one for the traders having a turnover of Rs 1 crore or less. They can opt to pay tax in lump sum. The Raahat scheme is for Small town traders falling under Class 2 and class 3. People who have opted for this scheme can pay tax due in four Equal Quarterly instalments.
There are many benefits that the traders can avail under the Raahat scheme. Any business premises owned by a person registered under the scheme cannot be inspected without prior permission from the Excise and Taxation Commissioner.
If the premises is examined by any officer without prior permission from the Excise and taxation commissioner, the trader can lodge a complaint which will then be looked on by the commissioner himself.
The single taxation system in the state also gives the traders the benefit of being free from the accounting and taxation procedures. Under this the traders have to give tax only in the production stage. This tax consists of all the tax, even the tax which would been given after the production. This does away with the paper work in every stage.
The VAT in latter months of 2015 was also brought down to 4.95 per cent by the state government. The VAT in Punjab stood at a staggering 6.5 per cent but after the IFCC took the matter to the Deputy Chief Minister and Revenue minister, this has been lowered. The new low rate of VAT gives the traders another benefit in their hands.
The trader’s policy gives the traders of Punjab a lot of benefits. It helps in getting investment into the state by attracting more and more traders into the state. The growth of traders benefits the government so this makes it a ‘quid pro quo’.
Traders in Punjab even get insurance schemes especially for them. These schemes are the first of its kind in India. These insurance schemes are for traders with a turnover up to Rs. 1 crore.
Under the Accidental death &disability Insurance cover, the traders will be given cover of Rs. 2 Lakhs. Fire insurance gives a cover of Rs. 5 lakhs if the stock is damaged by fire kept in a registered location. Whereas the Health Care cover gives Rs. 50,000.
There are about 1.86 lakh traders that benefit from the scheme. The various benefits of insurance, social security net, the raahat scheme and other small benefits help the traders to grow at a rapid pace in the state.