CHANDIGARH: Reaffirming the zero-tolerance policy against tax evasion under CM Bhagwant Singh Mann, Finance, Planning, Excise and Taxation Minister Harpal Singh Cheema on Monday announced that the Punjab Government has achieved record enforcement outcomes in the financial year 2025–26, marking a decisive shift towards intelligence-led action and robust revenue protection.
Detailing the performance, Minister Harpal Singh Cheema stated, “Driven by the focused and intelligence-led actions of the State Intelligence and Preventive Units, the State Taxation Department imposed massive penalties amounting to ₹1, 383.11 crore during the year. Out of this imposed amount, a staggering ₹1, 137.85 crore has already been recovered, reflecting a significant leap in enforcement efficiency and revenue realization for Punjab.”
Highlighting the backbone of this success, he added, “Inspection-based enforcement emerged as the primary driver, accounting for ₹1, 215.95 crore in penalties and ₹972.15 crore in actual recoveries. Alongside this, road checking operations contributed a solid ₹165.71 crore. This performance marks a multi-fold improvement over FY 2024–25, where inspection enforcement resulted in ₹147.28 crore imposed and ₹41.53 crore recovered, and road checking recoveries stood at ₹157.14 crore. This sharp surge in FY 2025–26 underscores a transformational shift in the state’s capacity for detection, enforcement, and actual financial recovery.”
Underlining the crackdown on fraudulent networks, Minister Harpal Singh Cheema said, “The Taxation Department registered eight FIRs and carried out 15 arrests throughout the year. Two of the most prominent FIRs involved seven individuals and exposed fraudulent transactions worth ₹385 crore. These targeted operations uncovered tax evasion of ₹69.57 crore orchestrated by firms engaged in issuing invoices without the actual supply of goods.”
He added, “Additional FIRs were registered across Bathinda, Mandi Gobindgarh, Ludhiana, and Chandigarh to take decisive action against illegal transport of goods and deceptive billing networks. In one highly significant operation, a Ludhiana-based proprietor was arrested for passing fraudulent Input Tax Credit exceeding ₹9 crore.”