STAFF REPORT IBD: The provincial governments have started implementing the harmonisation of agriculture income tax policy in the provinces under which the government of Khyber Pakhtunkhwa has collected information on agriculture income from the Federal Board of Revenue (FBR) and served tax demand notices on those who have declared agriculture income in their tax returns.

According to sources, all the finance secretaries have started taking steps for collecting agricultural income tax at local level.

It has also been learnt that tax demand notices have been served on the basis of data provided by FBR on agriculture income.

However, in reaction, some persons in KPK have approached civil courts for cancellation of the notices on the pretext that notices can only be issued to the owners of 50 acres and 100 acres of irrigated or non-irrigated lands, respectively.

Meanwhile, the KPK government has taken other steps in this regard as well and issued a notification to make it mandatory for owners and cultivators of 121/2 acres or more of cultivated irrigated land, 25 acres of cultivated non-irrigated land or mature orchard having net income more than Rs100,000 to self-assess their agriculture income and file agricultural income tax returns.

According to the sources separate registers will be maintained for landowner and tenant showing year-wise details of holdings, tax assessed, and paid. All owners/cultivators of 121/2 acres or more of cultivated irrigated land, 25 acres of cultivated un-irrigated land, or of mature orchard are liable to self assess their incomes and submit agriculture income tax returns.

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