Staff Reporter Lahore
Punjab’s collection of agriculture income tax (AIT) has increased by slightly over 50 per cent to Rs2.1 billion from Rs1.4bn in the last five years but remains far below the province’s estimated potential and unable to become a major revenue generation source for the government.
A study, done a few years back by Institute of Development and Economic Alternatives researcher Anjum Nasim, had estimated that the agriculture sector had a tax revenue potential of Rs55-75bn from crop farming and land rental in the tax year 2010.
The paper, using a more limited data set to project taxable income and using the tax rates applicable under the Finance Act 2012, had shown that the tax potential for the tax year 2013 was about Rs 30bn.
“The estimates continue to change from year to year, depending on production swings,” he told Dawn on Saturday.
According to the provincial civil accounts for the period between July and February, the provincial government has collected Rs1.54bn in taxes from agriculture against the target of Rs2.5bn for the present financial year.