Dispelling the impression that no taxes are implemented on agricultural income in the province, the Sindh government has fixed a target of Rs 500 million to be collected on account of agriculture income tax during the new financial year.
During his budget speech in the Sindh Assembly, Sindh Finance Minister Syed Murad Ali Shah said the tax on agricultural income is much debated and misunderstood.
“Those criticising us for taking a backseat on agricultural income tax are perhaps not aware of the historic decision taken by Shaheed Zulfikar Ali Bhutto of taxing agricultural income through the Finance Act, 1977,” he said. He added that the law passed in 1977 by the parliament was thwarted by military dictator Ziaul Haq.
“Now collected under the Sindh Land Tax and Agriculture Income Tax Ordinance, 2000, considerable problems have been faced in its collection, with the major problem being devolution,” Shah said, “Over the past ten years, lesser control over revenue officers has resulted in tax collection going down by 50 percent.”
The finance minister informed the house that in an effort to find a way forward, the government had held several meetings with concerned stakeholders, including representatives from Sindh Chamber of Agriculture, Sindh Abadgar Board, Revenue Department and Agriculture Department.
It was decided to tighten the agriculture tax net and through concentrated efforts, for the first time the government would achieve its collection target of Rs 300 million this year.
“In the new financial year, the government has set the target of Rs 500 million and is hopeful that it will be achieved,” said Shah.
