Punjab Uncovers Massive Tax Evasion in Hospitality Sector

Punjab's Finance Minister, Harpal Singh Cheema, revealed significant tax evasion in the state’s hospitality sector, uncovering discrepancies worth Rs 200 crore and estimating that this could rise to Rs 500 crore as the investigation continues. Intensive audits have identified major evasion cases in key urban centers.

Punjab's Finance Minister Harpal Singh Cheema announced the detection of tax evasion in the hospitality sector amounting to Rs 200 crore. The ongoing investigation could raise this figure to nearly Rs 500 crore, highlighting widespread financial discrepancies across establishments such as dhabas, restaurants, and eateries.

The crackdown involved 882 establishments, revealing that systemic under-reporting mostly relied on cash and hybrid payment methods. Preliminary efforts examined 239 cases of turnover suppression, leading to a tax liability of Rs 2.54 crore, with Rs 2.02 crore already recovered.

Data analytics and inputs from the Tax Intelligence Unit are central to this operation, identifying evasion hotspots in key urban centers like Mohali and Jalandhar. The initiative also employs consumer incentives to encourage billing transparency and is collecting digital transaction data to bolster the investigation.

(With inputs from agencies.)