The minister said that a major contributor to the revenue surge was the One-Time Settlement (OTS) Scheme-2025.

Punjab Posts Robust Revenue Growth in 2025-26, Harpal Cheema Highlights GST and Excise Gains

Punjab Finance, Planning, Excise and Taxation Minister Harpal Singh Cheema said on Tuesday that Punjab has recorded robust revenue growth in the financial year 2025-26, driven by significant increases in tax collection and strengthened enforcement efforts. According to official figures, the state registered a 16.03 per cent rise in Goods and Services Tax (GST) collections, amounting to Rs 17,860.09 crore up to November 2025, which is an increase of Rs 2,467.30 crore over the same period last year. Excise revenue also performed strongly, touching Rs 7,401 crore, reflecting an 8.64 per cent year-on-year growth.

While GST rates were rationalised in September 2025, with taxes on essential items reduced from 12 per cent to 5 per cent, targeted compliance and enforcement measures helped sustain cash tax inflows. Value Added Tax (VAT) and Central Sales Tax (CST) collections reached Rs 5,451.76 crore, representing a 3.35 per cent increase compared to the corresponding period last year.

The minister said that a major contributor to the revenue surge was the One-Time Settlement (OTS) Scheme-2025, which has already resolved 3,574 cases and yielded Rs 52 crore in recoveries while offering tax waivers to compliant traders. Cheema also highlighted the role of the Tax Intelligence Unit (TIU) and advanced data analytics, which have recovered Rs 344.06 crore in taxes and penalties. Efforts to monitor non-filers of GSTR-3B resulted in Rs 2,185.96 crore in cash deposits.

The state’s enforcement push has been vigorous, with 3,860 FIRs registered and 3,795 arrests made to curb liquor smuggling and illicit distillation under the 2025-26 Excise Policy that set an ambitious target of Rs 11,020 crore. Penalty collections by the State Intelligence & Preventive Units also saw a sharp rise. Cheema stressed that capacity building, including training 5,111 officers in 144 specialised programmes, has strengthened the revenue machinery and will help sustain growth through the remainder of the fiscal year.

According to Cheema, this performance underscores Punjab’s focus on enhancing compliance, leveraging technology, and improving revenue enforcement as cornerstones of state fiscal strategy in 2025-26.

Source: The Tribune