The Punjab government has set target of Agricultural Income Tax (AIT) for the financial year 2013-14 at Rs 2,018.938 million as compared to budget estimates of 2012-13, which was Rs 720.522 million. ”Government is fully aware of the revenue potential of AIT and after thoroughly debating has taken important decision of enforcing income mode tax during the next financial year besides amending the AIT Act to collect tax from those who declare agricultural income under their income tax returns to FBR,” said the White Paper issued by the Punjab Government regarding budget 2013-14.
According to the budget documents AIT is an important direct tax available to provinces under the AIT Act promulgated in 1997. It envisaged payment of fixed amount per acre of land. Major amendments were introduced to this act in 2001 and whereby holders of 25 acres of irrigated land (equivalent to 50 acre un-irrigated land) were required to submit their AIT return.
Copyright Business Recorder, 2013