Punjab agri tax law draft covers livestock income also

LAHORE: The proposed law to tax agriculture in Punjab also covers the mudarabah companies, trusts, cooperative societies and finance societies, which get income from livestock.

However, the Punjab cabinet has been empowered, under the Punjab Agriculture Income Tax (Amendment) Act, 2024, to change the rates of the tax schedule. The agricultural tax on corporate farming would be lower than that of the common farmer.

The cabinet-approved Punjab Agriculture Income Tax (Amendment) Act 2024 includes implementation of a ‘super tax’ on large landowners, who earn huge income from agriculture. The draft law would now be presented in the Punjab Assembly for approval.

Under Sections 3 and 4 of the new law, farmers would submit a statement of their total cultivated area, or a return on total agricultural income. According to the law, the word ‘Agricultural Taxpayer’ would be used instead of ‘Assessee’ for the assessee for the agricultural tax. After passage of the law, agricultural tax would not be based on landholding, but on the agricultural income.

Sources said a session of the Punjab Assembly for approval of ‘The Punjab Agriculture Income Tax (Amendment) Act 2024’ might be called on Nov 11, as after approval of the bill, a copy of its notification would be provided to the IMF by Nov 15, 2024.

In ‘The Punjab Agriculture Income Tax (Amendment) Act, 2024’, the tax schedule contained in the Agricultural Income Tax Act of 1997 was abolished. In the Punjab Agricultural Income Tax Act 1997, the word ‘penalty’ for tax defaulter was written, which has been changed to ‘default surcharge’ and heavy penalties have been proposed. All such Mudarabah companies, trusts, cooperative societies, finance societies or any other society deriving income from livestock would also be taxed.