The Punjab government has significantly raised the agricultural income tax for the upcoming fiscal year, setting a bold new revenue target of Rs. 10.5 billion, which marks a 200% increase compared to last year.

According to official budget documents, commercial farms operating at a business scale will now fall under corporate tax rules, while individuals with higher incomes will also be liable to pay super tax. These changes are aimed at boosting revenue and increasing accountability in the agriculture sector.

In addition to tax increases, penalties and default surcharges have also been raised for taxpayers who fail to file returns or delay payments. These updates come as part of the Agricultural Income Tax (Amendment) Act 2024, reflecting a broader push for tax reform in the province.

Meanwhile, in contrast, Balochistan has announced a 10% increase in salaries and a 7% raise in pensions, offering relief to its government employees amidst economic challenges.

Punjab’s latest tax adjustments are expected to impact large-scale farm owners the most, especially those not previously taxed under corporate laws. The government hopes this move will improve transparency and tax compliance in the agricultural economy.