In a bid to promote transparency and faster tax collection in Punjab, the state government is soon to introduce an electronic payment facility system to file Value Added Tax (VAT) and excise tax.
The state Excise Department will soon sign a memorandum of understanding with five nationalised banks namely Punjab National Bank, State Bank of India, State Bank of Punjab, Oriental Bank of Commerce and Canara Bank for this purpose.
These banks will be the authorities for accepting e-Payment of VAT and excise tax.
Punjab government has already launched the process of electronic filing of VAT returns in the state and response to it is very encouraging as huge number of people opted for it this year.
Software for accepting these payments will be developed by the banks themselves and installed at designate branches throughout the state.
Excise and Taxation Department will start accepting e-Payment for VAT and Excise tax from next year,” Excise and Taxation Commissioner A Venu Prasad said.
Prasad said that e-Payment of taxes will bring transparency in tax collection and help solve the long standing problem of traders and industrialists regarding VAT refunds.