Bihar Government introduced a significant ‘one-time settlement’ initiative on Thursday, targeting traders burdened with tax liabilities from the pre-GST era.
Deputy Chief Minister and Finance Minister Samrat Chaudhary presented the Bihar Tax Disputes Settlement Bill, 2024 in the state assembly, successfully passing it through a voice vote.
Chaudhary highlighted the potential relief for traders with pre-GST tax liabilities once the bill is notified. Under the proposed scheme, traders can settle their pre-GST tax obligations by paying only 10% of the penalty, with the remaining 90% being waived. Additionally, a 35% payment of the disputed tax amount will result in a waiver of the remaining 65%.
Explaining the details, Choudhary emphasized that traders must pay 10% of the interest and penalty, along with 35% of the disputed tax, to avail this unique opportunity.
In a parallel development, Choudhary addressed the concerns of petrol pump owners, confirming the government’s acceptance of their request for exemption from filing VAT returns.
These crucial announcements unfolded on the penultimate day of the budget session, initiated a fortnight ago after Chief Minister Nitish Kumar secured a trust vote.
Bihar’s Finance Minister, Mr. Samrat Chaudhary, unveiled the state’s Budget for the fiscal year 2024-25 on February 13, 2024. The budget projects a Gross State Domestic Product ( GSDP ) of Rs 9.76 lakh crore, showing a robust 13.5% growth over the previous year. Notably, the expenditure ( excluding debt repayment ) for 2024-25 is estimated at Rs 2,56,333 crore, marking a 12% decrease from the revised estimates of 2023-24.
The budget emphasizes fiscal prudence, targeting a fiscal deficit of 3% of GSDP, contrasting with the higher-than-expected 8.9% in 2023-24. Policy highlights include Jeevika expansion for urban women’s self-help groups, increased support for backward class students, and a Rs 1,000 crore grant scheme for small business setup in 2024-25.
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