Punjab Assembly Passes Bill to Tax Agriculture Income

The Punjab Assembly on Thursday passed the Punjab Agricultural Income Tax (Amendment) Bill 2024. The legislation introduces a new taxation regime on agricultural income, including income from livestock, aimed at enforcing a bigger tax structure on agriculture revenue. Under the bill, higher-income farmers will be taxed, and tax defaulters face a daily penalty of 0.1 percent on their total income. Some are describing the bill as a necessary reform for the agriculture sector, while others argued that the bill disregarded farmers’ concerns. A senior legislator condemned the bill and said it conflicts with Article 142 of the Constitution, which restricts taxation on agriculture. A few others also criticized the bill, calling the proposed 40 percent tax on farmers an “economic murder” of the agricultural sector.