India, July 15 -- The Delhi Cabinet is likely to soon approve a long-awaited tax amnesty scheme aimed at resolving nearly Rs.85,000 crore in outstanding dues - primarily under the pre-GST Value Added Tax (VAT) regime - from before 2017, officials aware of the matter said on Monday.

The scheme, currently under high-level discussion, will offer significant waivers on penalties and interest, encouraging over 300,000 traders across sectors operating in the Delhi to settle long-pending tax liabilities.

A senior official in the Delhi government's finance department said the Trade and Taxes Department has submitted a detailed proposal outlining a framework for full or partial waivers on penalties, interest, or both.

"More than 300,000 traders...