Committee proposed to discuss farm taxation

Committee of federal and provincial governments to develop a uniform approach for collecting agricultural tax.

ISLAMABAD:

The Council of Common Interests (CCI) decided on Wednesday to constitute a committee of the federal and the provincial governments to develop a uniform approach for collecting the agricultural income tax.

The move is an apparent attempt to appease the Muttahida Qaumi Movement (MQM), a key coalition partner that has been pushing for greater taxes to be imposed on the agricultural sector.

So far, the CCI has not taken any decision regarding new taxes on agricultural incomes.

“The agriculture income tax was already levied but the system for collection of the same has to be improved,” an official statement said.

The CCI also discussed a seven-point agenda to take crucial decisions ahead of the budget.

The council agreed in principle to a proposal of streamlining the revenues of federal regulatory authorities like Ogra, Nepra and Pemra. It was also decided that suggestions of the provinces would be subsequently looked into.

It was proposed the amount over and above the budgetary requirements collected in the shape of licence fee, penalties and fines would be deposited in the Federal Consolidated Fund. The CCI also unanimously approved a draft amendment bill for the Securities and Exchange Commission of Pakistan.

The CCI decided that the Ministry of Water and Power would negotiate with the Sindh government to provide 200 cusecs of drinking water for Islamabad and that the Indus River System Authority would be made financially independent by instituting a 30 paisa per acre feet charge on all canal heads and a levy of half paisa per watt of electricity generated.

Published in The Express Tribune, June 2^nd, 2011.