The Punjab Assembly passed the Punjab Agricultural Income Tax (Amendment) Bill 2024 amid strong opposition from the PPP and PTI, who staged a walkout in protest against the rejection of their proposed amendments.
The bill, which seeks to tax agricultural and livestock income, will come into effect in 2025 and is aimed at introducing an “equitable” agricultural income tax system. Farmers with higher incomes will face a super tax, while tax defaulters will be penalized with fines of 0.1% per day on unpaid amounts.
Under the new provisions, farmers earning less than Rs12 lakh annually will face a fine of Rs10,000 for late payments, while those earning below Rs4 crore will pay Rs25,000. Farmers with income exceeding Rs4 crore will face a fine of Rs50,000 for delayed payments.
Punjab Minister for Parliamentary Affairs Mian Mujtaba Shuja ur Rehman called the bill a step toward establishing a new “regime of agriculture” and emphasized the need for equitable taxation.
However, opposition members sharply criticized the government for excluding their recommendations and failing to consult stakeholders. PPP parliamentary leader Syed Ali Haider Gilani stated that the PPP is a pro-farmer party and cannot support measures that place undue pressure on farmers. He accused the government of pursuing policies aligned with the International Monetary Fund (IMF) rather than addressing farmers’ concerns.
PTI legislator Rana Aftab Ahmad Khan described the bill as a “black day” for agriculture, alleging that it contravenes Article 142 of the Constitution, which restricts taxation on agriculture. He claimed the bill disregarded constitutional limits and further burdened an already struggling agricultural sector. PTI MPAs Ahmar Rasheed Bhatti and Nadeem Qureshi echoed these sentiments, with Qureshi asserting that the 40% tax would amount to the “economic murder” of farmers.
The bill also introduces provisions to tax income generated from livestock, categorizing it as agricultural income. The legislation aims to broaden the tax base and generate additional revenue for the province. However, opposition parties argue that these measures could lead to economic hardship for farmers and reduced agricultural productivity.
The bill will now be sent to the governor for approval, though sources suggest it may be returned to the assembly for further review. If passed again, the legislation will become law, marking a significant shift in the province’s agricultural taxation system. Farmers and opposition parties remain concerned about the financial implications and the perceived lack of consultation in the legislative process.
