Government Punjab The International Monetary Fund (IMF)The IMF) have started preparations for collection of agricultural income tax from farmers.
According to preliminary proposal documents prepared by the Revenue Department and the Finance Department, the government is considering increasing the income tax on farmers holding more than 12 acres of land from July 1, 2025.
In this regard, the Finance Department of Punjab has placed the conditions of IMF before the provincial government and the slab prepared by the federation on agricultural income tax has also been presented to the government.
And now preparations are being made for the increase by taking suggestions from the concerned authorities.
The Punjab government also announced a relief package of four hundred billion rupees for farmers in this year’s budget and it has also been kept in the budget. Which will be given to farmers through Kisan Card as a subsidy.
Officials of the Punjab Finance Department say that proposals to increase the tax on agricultural income for the next year on the terms of the IMF are under consideration, but the final decision has not been taken yet.
Khalid Khokhar, president of Kisan Ittehad, has said that if the government wants to increase the income tax on the terms of the IMF, it should first ensure the provision of a regional playing field. The agriculture sector has always been neglected and now preparations are being made for taxation. Which will create more problems in this sector and farmers will suffer financial difficulties.
According to agriculturist Mahmood Nawaz Shah: ‘Like other sectors, increasing tax on agricultural income is indispensable for running the state. But the government should provide facilities to the farmers just as they are provided in urban or industrial areas.’
Tax proposals on agricultural income
According to the document received by Independent Urdu regarding the proposed agricultural tax proposals of the Punjab government, there are recommendations to collect agricultural income tax from Rs.
Similarly, there are proposals to increase the tax on agricultural income of 12 to 22 lakh rupees from 57 thousand to 1 lakh 80 thousand rupees.
There are recommendations to increase the tax on annual agricultural income from 20 to 24 lakh rupees from 60 thousand to 2 lakh 30 thousand rupees.
It has been recommended to increase the agricultural income tax from Rs. 2.30 lakh to Rs. Proposals have been made to increase the annual agricultural tax from Rs. 45,000 to Rs.
These proposals have been submitted to the Punjab Government by the Finance Department.
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According to Finance Department officials: ‘These proposals are still being considered but no final decision has been taken. If there is a decision, this tax will be applicable from July 1, 2025. The government has not increased any tax in the budget this year, nor has any new tax been implemented.
Impact on agriculture from expected increase in agricultural income tax
President of Kisan Ittehad Pakistan, Khalid Khokhar, while talking to Independent Urdu, said that the state currently does not have any sector that is attracting growth, only economic growth is increasing in agriculture. Currently, our agricultural economic output is 6.25. The government should take measures to increase it and not take decisions to decrease it. This sector was never encouraged.’
Khalid Khokhar said that ‘sanitary workers in Lahore cleaned one day on Eid, then the Chief Minister congratulated them by calling them and also gave them an additional salary of one month. Farmers increased production growth by 6.25 percent, so did you hear or read any statement?’
According to Khalid Khokhar, “There is no government investment on agriculture, from which the production of 20 to 25 thousand billion is being taken. What are the expenses there?”
“If there is to be a tax, take measures to reduce the cost of production according to the region. DAP fertilizer is 4000 in India, we are buying it for 12000. Also compare the prices of electricity, agricultural machinery and electricity, how many hundred percent is more. That is why our crops are not being sold in the world markets due to being expensive compared to India’s.
Mahmood Nawaz Shah, the head of Kisan Abadkar, an organization working for farmers, said in a conversation with Independent Urdu that ‘just as tax is necessary for every sector to run the state, tax on agricultural income is also necessary. But the complaint of the farmers is that the same kind of facilities are given to other tax paying class. Provision of better facilities should be ensured in rural areas as well.’
Mehmood Nawaz Shah said that ‘in order to legally avoid paying taxes, just as the business class tries to reduce taxes by distributing income to their heirs or by disclosing expenses. Similarly, to avoid tax on agricultural income, farmers may have legal justification to try to reduce the tax rate by distributing property to their heirs. The division of every man’s property among those who are the legal heirs is legal and no one can stop it.’
According to Mahmood Nawaz: ‘Government should take such measures that people do not avoid paying taxes but pay taxes with pleasure. When they get the necessary facilities like developed countries, they will gladly pay taxes.’
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2024-07-05 20:27:16
