Chandigarh, May 13
Punjab is staring at a major crisis in the coming days, with the compensation for the rollout of goods and services tax (GST) about to end in June. The state stands to lose about Rs 15,200 crore annually, if the compensation is stopped by the Centre in June.
This had set the alarm bells ringing in the corridors of power. An urgent meeting to discuss the issue has been convened by the Chief Minister Bhagwant Mann on Saturday.
Sources said the state government would be urging the Centre to continue giving this compensation, as most of the state’s taxes were subsumed once the GST was rolled out. Other than getting taxes through value added tax (VAT) on retail fuels, excise duty, stamps and registration, and land revenue, there was a limited scope with the state government to impose any new taxes.