PESHAWAR: The Khyber Pakhtunkhwa (KPK) Assembly has approved the Agricultural Income Tax Bill, under which a super tax will also be imposed on high-income farmers. According to this bill, the tax will be implemented from January 1, 2025, and the land of the province will be divided into three divisions and four zones.
As per the text of the bill, in addition to the 15 percent income tax, a super tax of Rs 90,000 will be imposed on an annual agricultural income of more than Rs 1.2 million.
An income of more than Rs 1.6 million will be subject to a 30 percent income tax and a super tax of Rs 1.7 million, while an agricultural income of more than Rs 3.2 million will be subject to a 40 percent income tax and a super tax of Rs 6.5 million.
According to the bill, a 45 percent income tax and a super tax of Rs 1.6 million will be collected on an agricultural income of more than Rs 5.6 million. Similarly, a tax will also be imposed on corporate farming, where small companies will be charged 20 percent and large companies 29 percent.
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According to the bill, a tax of one percent will be levied on an annual agricultural income of more than Rs 150 million, while 2 percent will be levied on an agricultural income of more than Rs 200 million and 3 percent on an income of more than Rs 250 million.
Four percent will be levied on an income of more than Rs 300 million and six percent on an income of Rs 350 million, while eight percent will be levied on an annual agricultural income of more than Rs 400 million.
According to the bill, a tax of 10 percent will be levied on an income of more than Rs 500 million, and in addition to income tax, a land tax will also be levied, which will vary according to different zones.
As per the bill, a land tax of Rs 1,200 per acre will be levied on land of more than twelve and a half acres in Zone One, while less tax will be levied in Zones Two and Three compared to Zone One.
Agricultural Land Divided into Three Zones;
| Zone | Land Area (12.5 to 25 Acres) | Tax Per Acre (Rs) |
|---|---|---|
| Zone One | 12.5 to 25 acres | Rs1,200 |
| Zone Two | 12.5 to 25 acres | Rs900 |
| Zone Three | 12.5 to 25 acres | Rs500 |
