Sukhbir Badal says next SAD government will boost investment by letting firms retain State GST

Punjab senior leader Sukhbir Badal told reporters that the upcoming Shiromani Akali Dal (SAD) government plans to stimulate capital inflow by allowing companies to keep the State Goods and Services Tax (GST) they collect, rather than remitting it to the treasury. He argued that such a move would improve cash flow for manufacturers and service providers, making the state a more attractive destination for domestic and foreign investors.

Badal emphasized that the policy is aimed at removing a financial bottleneck that often discourages new projects, especially in sectors requiring substantial upfront working capital. By retaining the State GST, businesses could reinvest the funds into expansion, technology upgrades, and job creation.

The statement comes ahead of the next state elections, where economic growth and investment promotion have become key campaign themes. While the proposal has not yet been formalized, Badal indicated that the SAD leadership will draft the necessary legislative changes if they return to power.

Industry bodies in Punjab have welcomed the idea, noting that greater fiscal flexibility could accelerate ongoing infrastructure and manufacturing initiatives. However, fiscal analysts caution that the state will need to offset the potential revenue shortfall through alternative sources or efficiency measures.

The announcement underscores the SAD's focus on pro‑business reforms as it seeks to regain voter confidence ahead of the upcoming polls.