Islamabad, Oct 14: FBR Targets Rs. 300 billion Tax Collection from Agriculture Sector
With the assistance of the provinces, the Federal Board of Revenue (FBR) has projected that it will be able to collect up to Rs. 300 billion in agricultural income tax.
The provincial governments will start taxing agricultural income under the new system on January 1, 2025, and will amend the Agricultural Income Tax (AIT) regimes to fully align them with the Federal Personal Income (small farmers) and Corporate Income (Commercial Agriculture) tax regimes through necessary legislative changes.
Starting in 2025–2026, the province governments will move the services GST from a positive list to a negative list method in an effort to combat tax cheating.
In addition to provincial tax initiatives in expanding other areas of revenue collection and creating, executing, and collecting money under a common approach to property taxation, the provinces hope to collectively raise revenues from corporate tax in agriculture and GST on services.
The administrative changes required to close the tax compliance gap, particularly with regard to the general sales tax (GST), must also be implemented by the province governments.
According to additional sources, the National Tax Council’s mandate would be broadened to encompass the creation of pertinent tax policies, such as property taxes, as well as the legislative and administrative adjustments required to put them into effect.
