VAT amnesty scheme in final stage: Officials

The Delhi Cabinet is likely to soon approve a long-awaited tax amnesty scheme aimed at resolving nearly ₹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.

- Alok KN Mishra

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 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 ₹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,” he said.