Punjab government implements agricultural tax on major landowners

LAHORE: The Punjab government initiated an agricultural tax targeting large landowners (zamindar) in the province.

This aligns with the stringent stipulations set forth by the International Monetary Fund (IMF).

Read more: Sindh government reports 22 per cent increase in tax revenue

The new policy includes the introduction of a super tax on wealthy landowners who derive significant portion of their income from agricultural activities.

The provincial government also incorporated livestock income into the agricultural tax framework.

The measure aims to improve revenue generation in a province where agriculture makes up major chunk of the economy. Landowners notoriously pay some of the lowest taxes in the country despite being one of wealthiest.

The tax initiative is part of broader fiscal reforms designed to stabilise the economy and fulfill the IMF’s requirements in exchange for financial support.

Authorities have been carrying out an aggressive crusade to collect as much tax revenue as possible this year. The Federal Board of Revenue (FBR) rolled out a new system granting tax officials real-time access to the income and sales tax date of registered taxpayers. This was done after the revenue department fell almost Rs130 billion of the required amount.

The FBR is also digitising the entire system, expected to improve tax assessments and compliance regulations.

Similarly, a new Stock Register system was also made accessible through the Information Centre 2.0 platform. The digital tool would enable  officials to access detailed stock information, facilitating  tax assessments and aiding in the reduction of tax evasion.

The system centralised a taxpayers’ entire profile, providing an exhaustive list of their income and sales tax histories. This allows for comparisons of tax filings and declarations.

Read more: FBR to target big retailers in posh areas under revised policy

Following the aggressive campaign, the FBR did report an almost 57 per cent increase in complaints filed by the taxpayers against the board with the Federal Tax Ombudsman (FTO) compared to 2023.

Over 10,515 complaints were received over a period of ten months, with 9,900 complaints apparently resolved.