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Thursday July 25, 2024

Punjab enhances agri income tax target

By Munawar Hasan
June 14, 2024
This file photo shows farmers working in a wheat field. — AFP/File
This file photo shows farmers working in a wheat field. — AFP/File

LAHORE:The Punjab government has enhanced target for Agriculture Income Tax (AIT) for the fiscal year 2024-25.

The budget estimate for AIT for FY 2024-25 is set at Rs3.5 billion which is 22.8 percent higher than the budget estimate of FY 2023-24. The budget estimate 2023-24 was fixed at Rs2.85 billion while revised estimate 2023-24 was Rs3.50 billion.

AIT is an important direct tax of the province, collected under the Punjab Agriculture Income Tax Act of 1997. It is levied as a fixed amount per acre of land, or as a percentage of income of owners of agricultural land, whichever is higher. The rates of land based AIT were last revised in 2019.

The government has not changed rate of AIT though for the upcoming financial year nor measures for introduction of e-pay for AIT submission has been finalised. AIT is levied as a land-based tax depending on the size of landholdings, or an income-based tax depending on the income earned by the landowner, whichever is higher.

Board of Revenue has made significant progress towards automation of databases including land records and girdawari (bi-annual assessment of crops and production). The Government will ensure that the mechanisms for proper maintenance and updating of these databases are institutionalised. BOR has been mandated to take the actions necessary to include payment of AIT through the E-pay system of the government, which is already implemented for several taxes.