By

Liaqat Ali
Land Record Officer
 What is Agriculture Tax?

Any Rent or revenue derived by a person from land

which is situated in Pakistan and is used for
agricultural purposes, the Tax collected by
Provincial Governments on that rent or revenue is
called Agricultural Tax.
 Current Cumulative Contribution by Agriculture
Tax in Provincial Tax Pool is less than 1%

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 As per the Agriculture census of Pakistan
2010, there are 8.26 Million farms in Pakistan
with an area of 21.41 Million hectors
 The Contribution of Agriculture sector in GDP
is around 21%
 Average farm wise tax collection for the year
2014-2015 amounted to Rs. 270 per acre per
annum

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 Under the British rule in Sub Continent,
income tax including agricultural income tax
were imposed in 1860, much earlier than
Country such as Canada (1917), Australia
(1916)
 The Government of India Act 1935,
transferred agriculture from Centre to
Provincies

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 Taxation Enquiry Committee report 1960
 Land Revenue Act 1967
 Finance Supplementary Act 1977
 Income Tax Ordinance 1979
 Report of Prime Minister Task force on
Agriculture 1993
 PLRA Ordinance 2016

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Land Ownership Tax
Upto 12.5 Acres No Tax
12.5 to 25 Acres Rs. 100/ Acre
26 to 50 Acre Rs. 250/Acre
50 Acre or More Rs. 300/Acre

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 Income Level Tax
If total income is Less than No tax
Rs. 80,000
If total income does not exceed 5% to Rs.5000
Rs. 100,000
Income between Rs.100,000 to Rs. 7.5% + Rs. 5000 on over
200,000 Rs.100,000
Income between Rs. 200,000 and 10% + Rs.12,500 on over
Rs.300,000 Rs.200,000

If income is more than Rs.300,000 15% + Rs. 22,500 on over

Rs. 300,000

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 9
670

2007-08
760

2006-07
658

2005-06
615

2004-05
768
2003-04
623
2002-03

556
2001-02

671
2000-01

Province

Punjab
 Contribution to (in %)
GDP GROWTH TAXES
Agriculture 22 10 1
Industry 25 30 63
Services 53 60 26

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 Un-availability of accurate land records
 Corruption
 Tax evading attitude
 Structural problems confronting agriculture
sector i.e. old cultivating methods
 Lackluster Provincial Government approach
 Political Intricacies i.e. Election Maneuvering

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 LRMIS System
 Capacity Building and Developing Expertise in
Provincial Revenue Department
 Progressive Tax Collection (Earn more, Pay
more)
 Updating land revenue laws
 Innovative and technical cultivating methods
(cost effective)
 Consistent policies

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