Provinces agree to review agriculture tax laws

All four provinces have principally agreed to review their existing agriculture income tax laws for introducing legislation for enforcement and effective collection of agricultural income tax at provincial level.
Sources told Business Recorder on Thursday that the provincial finance secretaries had discussed the issue of the agriculture taxation during the last meeting of the provincial finance secretaries convened at the Finance Division. Officials of the finance ministry had reportedly informed the meeting that the FBR chairman was specially invited to enlighten the stakeholders on agriculture taxation.
Salman Siddiq Chairman FBR read out the various sections from Agriculture Income Tax Ordinance Punjab and shared different options/suggestions with the Provincial Finance Secretaries to exploit the resource potential available in agriculture sector. The provincial finance secretaries also shared their proposals to effectively enforce the agriculture income tax law towards resource mobilisation, sources stated.
Sources further said that all the Provincial Finance Secretaries were reportedly in agreement that some forum at federal level, like Council of Common Interests (CCI), needed to be approached to facilitate the provinces in this regard. Such national forums are instrumental in guiding the provinces for taxation of the agricultural income. It was resolved that all the provincial finance secretaries would arrange to get the spadework started by the respective Provincial Departments, like review of existing agriculture income tax laws and legislation for bringing changes/amendments in their respective laws to make them effective under present circumstances. The Economic Advisory Council (EAC) had asked the government to ensure maximum compliance of existing tax laws and bring agriculture income into the tax net instead of going for assets/wealth tax. Provinces are the implementing authorities for imposition of the income tax on agriculture.
Agriculture sector group of the EAC had focused on: (1) cotton - textile biggest exporter; (2) Crop water usage; and (3) dairy. It was suggested that R&D be improved and the legal and institutional framework be reformed to improve production of cotton bales. It was recommended that canal water be priced realistically.