Himachal rolls out ‘Sadhbhawana legacy resolution’ scheme to resolve tax cases

Shimla: In a strategic move to address long-pending tax arrears, the Congress government in Himachal Pradesh has approved the rollout of the Sadbhawana Legacy Cases Resolution Scheme 2025. This initiative seeks to resolve tax cases that have been stalled due to both administrative and non-administrative reasons.

The scheme will now be expanded to cover cases under non-subsumed enactments, ensuring that a broader range of tax-related disputes is addressed. With an estimated 3,500 pending cases, the resolution of these disputes is expected to generate around Rs 10 crore in revenue for the state.

The government aims to streamline the process and bring overdue tax payments into the fold, improving financial health and resolving long-standing issues.

“The initiative is part of the government’s ongoing efforts to reduce litigation and enhance revenue realization,” said a senior officer of the state’s Department of Excise and Taxations.

Under the scheme, cases related to petroleum products up to the financial year 2017-18 will be addressed. Notably, the State Value Added Tax (VAT) Act, which governs petroleum products such as diesel and petrol, remains outside the Goods and Services Tax (GST) purview.

Following the implementation of GST on July 1, 2017, various state taxes, including Entry Tax, Entertainment Tax, and Luxury Tax, were subsumed under the new tax regime. To resolve pending disputes under these taxes, the state has launched three Legacy Cases Resolution Schemes to date, he said.

According to Chief Minister Sukhwinder Singh Sukhu, “Earlier schemes have successfully resolved 48,269 pending cases, generating a revenue of Rs 452.68 crore and significantly relieving litigants. The government remains committed to minimizing legal disputes and streamlining tax collections through such initiatives”.

The latest rollout of the Sadbhawana Legacy Cases Resolution Scheme is expected to expedite the resolution of longstanding tax disputes, further strengthening the state’s financial position.

Meanwhile, minister for Technical Education Rajesh Dharmani rejected the BJP’s charges of burdening the state with debt.

He mentioned that, up to this point, the state government has borrowed Rs 30,080 crore, with a significant portion allocated towards fulfilling commitments made in the budget of the previous BJP government and servicing the debt.

Talking to the media Dharmani said that the BJP was spreading false propaganda about the financial situation of Himachal as out of Rs 30,080 crore loan, Rs 9,337 crore was spent in fulfilling the announcements made in the BJP government’s budget. Apart from this, Rs 7,464 crore was spent in repaying loans and Rs 11,226 crore was spent on various development schemes.

He claimed that the government spends Rs 2,800 crore every month solely on salaries and pensions, while Himachal Roadways (HRTC) receives a grant of Rs 60 crore. Additionally, this year, the Electricity Board will be getting higher financial support of Rs 2,200 crore.