Delhi cabinet may approve amnesty scheme for Rs.85,000 crore unpaid VAT taxes
The Delhi Cabinet is likely to soon approve a long-awaited tax amnesty scheme aimed at resolving nearly Rs.85,000 crore in outstanding dues – primarily under the pre-GST Value Added Tax (VAT) regime – from before 2017, officials aware of the matter said on Monday.
The scheme, currently under high-level discussion, will offer significant waivers on penalties and interest, encouraging over 300,000 traders across sectors operating in the Delhi to settle long-pending tax liabilities.
A senior official in the Delhi government’s finance department said the Trade and Taxes Department has submitted a detailed proposal outlining a framework for full or partial waivers on penalties, interest, or both.
“More than 300,000 traders together owe about Rs.85,000 crore. Through the amnesty scheme, the government aims to recover at least 50% of this amount. It will both boost tax revenue and ease the legal burden on the administration,” the official said.
Tax amnesty schemes are periodically rolled out by state governments to allow taxpayers to pay principal dues while availing relief on additional charges such as interest and penalties. Such schemes are notified under laws like the Delhi VAT Act and must receive Cabinet approval.
