In an official press communiqué, Harpal Singh Cheema stated that the Taxation Department has received 7,654 applications since the launch of OTS-2025 on October 1, 2025. He added that the scheme has resulted in unprecedented waivers amounting to ₹38,477 crore, reflecting the success of the Bhagwant Mann-led Punjab Government’s policy of promoting voluntary compliance over prolonged litigation.
Highlighting the positive response from the trading community, the Finance Minister said the deadline for availing the scheme has been extended from December 31, 2025, to March 31, 2026. He said the extension was granted in response to representations from industry associations and to allow eligible taxpayers adequate time to assess their liabilities and opt for settlement through a transparent and simplified process.
Punjab Finance, Excise and Taxation Minister Harpal Singh Cheema highlighted the strong success of the One Time Settlement of Outstanding Dues, 2025 (OTS-2025), stating that the scheme has already enabled the recovery of ₹110 crore while delivering significant financial relief… pic.twitter.com/NSZirsMxGg
— Government of Punjab (@PbGovtIndia) February 6, 2026
Reiterating the government’s commitment to ease of doing business and a trader-friendly tax regime, Harpal Singh Cheema said that OTS-2025 offers a 100 percent waiver of interest and penalties across all categories, significantly reducing the financial burden on businesses.
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Harpal Singh Cheema Details Tax Relief Structure Under OTS-2025, Appeals to Traders
Harpal Singh Cheema further explained that the scheme provides slab-wise relief on the principal tax amount, with a 50 percent waiver for demands up to ₹1 crore, a 25 percent waiver for demands between ₹1 crore and ₹25 crore, and a 10 percent waiver for demands exceeding ₹25 crore. Similar graded relief is also available for dues under Section 14-B of the Punjab General Sales Tax Act, 1948, and Section 51 of the Punjab VAT Act, 2005.
Appealing to traders and taxpayers to avail the benefits of the scheme, the Finance Minister urged all eligible applicants to regularise their pending dues and contribute to the state’s revenue in a cooperative manner. He also clarified that while the government remains facilitative, cases where the scheme is not availed may face action as per law to ensure fairness and discipline in the system.
Harpal Singh Cheema added that all taxpayers, except government food grain agencies, are eligible to apply under OTS-2025 by submitting Form OTS-01 to the office of the jurisdictional Assistant Commissioner of State Taxes (ACST).