Business

Punjab govt introduces super tax on wealthy landowners

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Staff Reporter

LAHORE: Punjab’s agricultural tax policy has been a topic of discussion for years, aiming to boost revenue generation in a province where agriculture contributes significantly to the economy, accounting for 27% of the provincial Gross Domestic Product (GDP).

The Punjab government has initiated an agricultural tax targeting large landowners, aligning with the International Monetary Fund’s (IMF) requirements.

This policy includes a super tax on wealthy landowners who derive substantial income from agricultural activities and incorporates livestock income into the agricultural tax framework.

Historically, agricultural tax collection in Punjab has been relatively low. In FY2014, the collection was only Rs0.83 billion, almost the same level as the previous year.

The Punjab Agricultural Income Tax Act 1997 allows the provincial government to tax agricultural incomes, while the federal government taxes other sources of income. However, in practice, the ‘tax on agriculture’ is more of a land tax than an income tax.

Staff Reporter

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