FBR urges joint effort with provinces to close agricultural income tax gap

Staff Reporter

The new FBR head Tuesday proposed a close col-laboration with provincial governments in order to better collect agricultural income tax in line with the centre’s resolve “towards broadening of tax base and documentation of economy”.

Chairman FBR Dr Muhammad Ashfaq Ahmed has proposed “a close cooperation between FBR and Provincial tax authorities to ensure that no taxable income goes untaxed and due taxes are paid in re-spective collecting jurisdiction”.

In an attempt to “plug in tax evasion of agricultural income”, Chairman FBR Dr Ahmed issued a letter to all provincial governments for a proactive col-laboration.

Federal Bureau of Revenue Chairman has proposed technical collaboration between FBR and Provincial tax authorities on Agricultural Income which is taxed by provinces and is exempt from federal In-come Tax.”

The tax evaders claim agricultural income as ex-empt in Federal Bureau of Revenue returns but do not pay tax provincial governments as well, the letter said.

Income Tax ordinance prescribes that Agricultural Income will be exempt only if Provincial income tax is paid on it.

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