Pakistan

Farming revenues: Agriculture tax may not yield much

FBR considering two different modes of taxing agriculture.

Express March 20, 2011

KARACHI:

The FBR is considering two different modes of taxing agriculture, neither of which may yield much in terms of revenue, given the current state of the tax infrastructure, said FBR chairman Salman Siddiqui.

“If production is taxed, we can generate between Rs60 billion and Rs70 billion,” said Siddiqui, though he was quick to point out that
this would be very difficult since it would involve a massive documentation exercise for which the FBR does not currently have the manpower.

The other method would be what is known as a presumptive tax, which is based on the amount of land owned by a single individual. This would be much easier, but would generate only about Rs6 billion in revenues, according to Siddiqui.

“More than 85 per cent of landholdings in Punjab fall in the subsistence level bracket and cannot be taxed,” explained the FBR chairman. “Only about 5 per cent of total cultivable land would be taxable if agricultural sector is taxed on acreage.”

Published in The Express Tribune, March 20^th, 2011.

COMMENTS (3)

Billoo Bhaya | 13 years ago | Reply Mr. Secretary is having a hard time figuring how to raise land revenue. He ought to know that since the Battle of Plassey in 1757, the East India Company (EIC) ran India through Land Revenue Taxes. That's why the entire Revenue Department setup had a District Collector, aka Deputy Commissioner, ensuring that taxes were collected. This was at a time when India was not industrialized, no computer technology, no air-conditioning and the DC rode on a horseback everyday from village to village with a trunk load of files. EIC governed the country more effectively, dispensed justice more fairly than the Moguls ever did. In Mandars, Gurdawaras and Mosques people prayed for deliverance from the evil of the local native rulers. I wonder when will we be delivered from the thuggies and dacoits that make up the Goberment of Porkistan.

ba ha | 13 years ago | Reply Strange, this country has had agriculture since the time of Adam and the people are so ignorant about taxes on produce. There are no mundees so how can you possibly tax anything without mundees. You dictate the price of a produce from Islamabad then expect everyone to sell to you. Then you insult the farmer by asking him to pay even more tax?. FINALLY just when the price gets profitable, a TWO BIT SECRETARY MAKES A DEAL WITH AN INDIAN COMMANDER and decided to import the produce UNILATERALLY!!. HE HAS YOUR TAXES YOU ARE LOOKING FOR -- Tax your Brains in Govt. and leave the farmer alone

VIEW MORE COMMENTS

Replying to X