FBR Eyes Rs. 300 Billion Tax Collection from Agriculture Sector

The Federal Board of Revenue (FBR) has estimated that it will collect a maximum amount of Rs. 300 billion from agricultural income tax with the help of provinces. Sources told ProPakistani that the agricultural income tax has the potential of nearly Rs. 300 billion. FBR has asked the provinces to adopt a federal income tax schedule to collect agricultural income tax. The provincial governments shall amend the Agricultural Income Tax (AIT) regimes to fully align them, through necessary legislative changes, with the Federal Personal Income (small farmers) and Corporate Income (Commercial Agriculture) tax regimes and begin taxation of agricultural income under this new regime from January 1, 2025. The provincial governments shall transition the services GST from a positive list to a negative list approach to combat tax evasion to take effect from the start of 2025-26. Provinces aim to collectively raise revenues from corporate tax in agriculture and GST on services combined with provincial tax efforts in expanding additional areas of revenue collection and developing, implementing, and collecting revenue under a common approach to property taxation. The provincial governments shall also implement the necessary administrative reforms to narrow the tax compliance gap, including for the general sales tax (GST). National Tax Council terms of reference will be expanded to include the design of the relevant tax measures including property tax and the necessary legal and administrative changes to implement them, sources added.