Punjab’s Excise and Taxation Minister, Harpal Singh Cheema, disclosed a significant tax evasion scheme of Rs 200 crore within the hospitality industry. The investigation has already targeted 882 establishments, recovering Rs 2.02 crore, with potential evasion estimates nearing Rs 500 crore as more data is scrutinized. Urban areas like Mohali, Jalandhar, and Ludhiana have been identified as hotspots for tax evasion, particularly in sectors involving cash and hybrid payments.
Cheema emphasized the prevalence of turnover suppression in various businesses such as hotels, dhabas, eateries, bakeries, and restaurants, totaling 882 establishments for the years 2025-26. The minister projected that after analyzing data from 2023-24 and 2024-25, the total evasion amount could escalate to around Rs 500 crore. Initial investigations have already revealed turnover suppression amounting to approximately Rs 50 crore, resulting in the detection of tax evasion totaling Rs 2.54 crore at a five percent rate, with Rs 2.02 crore already recovered.
The discrepancies in taxpayer turnovers were highlighted by Cheema, with three taxpayers suppressing over Rs 2 crore, six taxpayers over Rs 1 crore, 18 taxpayers over Rs 50 lakh, 26 taxpayers over Rs 25 lakh, and 91 taxpayers over Rs 5 lakh. Sector-specific analysis unveiled a trend of under-reporting in businesses dealing with high cash and hybrid payments. Notably, dhabas accounted for about Rs 10 crore of the suppression, followed by small eateries, coffee, chai bars at Rs 8 crore, and pizza and fast-food outlets exceeding Rs 6 crore.
