Traders and dealers in Punjab will get tax refund through online banking system from next fiscal as the Punjab government today announced to do away with practice of payment through cheques to curb corruption.

Among other initiatives, the state government also announced to create a corpus of Rs 150 crore exclusively for payment of VAT refund and it has also decided to honour highest tax payer to encourage due tax payment by industry.

The Punjab government has decided to roll out online payment of VAT refunds from April 1, 2013 to bring transparency, an official release said.

Punjab Deputy Chief Minister Sukhbir Singh Badal said he has issued directions to excise and taxation department that payment through checks should be stopped and every payment should be done to dealers through online banking.

Similarly, the department should also accept receipts of all taxes through online banking as state authorities face problem of non-reconciliation of cheques sent for clearing.

Badal further said it has been also decided to create a monthly dedicated corpus of Rs 150 crore in Excise & Taxation department for hassle free refund.

The Deputy Chief Minister Sukhbir Singh Badal made these announcements while presiding over a meeting of State Consultative Committee of Excise and Taxation department here today, the release said.

He said Punjab is all set to introduce total computerisation in excise and taxation department within one year to provide better facilities to the dealers and industrialists.

He further said that VAT dealers would be categorised as per their compliance with the tax law.

Introducing a concept of honouring highest tax payers in every city, Badal said he has asked the department to organise a function to honour highest tax payers so that other people would be motivated to pay their taxes honestly.

In a novel scheme to motivate consumers to seek bill for every purchase, Badal said he has asked the department to put up drop boxes in all 143 towns of the state in which consumer after purchasing goods from any shop, can drop the bill after writing his name, address and mobile number on the overleaf of the bill.

He said from the bills collected in each city a monthly draw would be conducted and lucky consumers would be given attractive prizes.